This prime industrial freehold has a site area of
approximately 35,720 sqm, with a total lettable
area across both tenancies of 17,720 sqm.
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Key Attributes of this Investment
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The Promoters believe the property has been well
purchased at $12 million. In July 2021, CBRE
independently valued the property at $13 million.
In January 2021, the capital improved value
of the property was assessed at $13,825,000 some
15% above the purchase price.
Bank SA has formally approved first mortgage
funding of $6.6 million (55% of the contract
purchase price) on a non-recourse basis, at an
all-up variable rate of 1.95% per annum.
Monthly income distributions are forecast to
commence at the rate of 10.00% p.a.
The proposed initial capital-raising of $6.75
million will leave the Trust with a substantial cash
reserve of more than $800,000 following
settlement of the purchase. The surplus funds
will be available to fund any capital expenditure
and provide for incentives to be paid to the
tenants to extend or renew their leases in 2024.
If it is determined at a future date that the
subdivision and development of the site is in the
interest of Unitholders, additional capital will be
raised to finance the development. Existing
Unitholders in the Grand Junction Unit Trust will
have priority entitlement to participate in
any future capital-raising.
An extensive Due Diligence investigation was
undertaken between May 2021 and August
2021, following which an unconditional contract
has been executed by all parties.
Based on recent comparable land sales, the
Manager estimates the value of the underlying
land at a little above $8 million, or $225 psm,
providing a substantial buffer against any future
risks, and increasing the options available to the
Trust over time.
The property comprises two free-standing
industrial buildings on a single certificate of title.
Both properties are fully leased to substantial
corporations – Capral Limited (ASX listed) and
Bianco Construction Supplies, a major supplier to
the booming SA construction industry.
6. The Manager considers that both properties are
significantly under-leased, creating an opportunity
for increases in income and capital value of the site.
7. The Bianco warehouse (9,765 sq.m.) is an older
structure, leased until December 2024. The
short lease term provides the Manager with the
flexibility to choose between re-leasing the
space and redeveloping the Bianco site with up
to 5 modern factory/warehouses.
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