IOOF Investing in Australian Direct Property
The Australian direct property portfolio (Property Plus Trust) can be accessed through our multi-manager diversified funds: IOOF MultiSeries and IOOF MultiMix. IOOF | Investing in Australian Direct Property
About the portfolio
The Australian direct property portfolio (Property Plus Trust) can be accessed through our multi-manager diversified funds: IOOF MultiSeries and IOOF MultiMix.
Since 2002 the specialised property team at IOOF Investment Services Ltd have been managing the Australian direct property portfolio. This core property fund was created by IOOF to match the risk profile of our investors while generating strong, reliable and consistent income returns and capturing increases in market value over time.
The IOOF property team is led by Simon Gross who has been managing major institutional property portfolios for over 35 years. The property fund has an enviable record of generating strong risk-adjusted returns to investors over a range of market cycles and benefits from being a diversified portfolio that currently holds eighteen modern, centrally located and well tenanted commercial office and industrial properties in Melbourne, Sydney, Newcastle and Adelaide.
As the fund is internally managed it is designed and constantly adjusted to specifically match investors’ objectives by generating strong recurring income streams as a consequence of high occupancy and tenant retention. Only moderate financial gearing is utilised to ensure investors’ capital is protected during all economic cycles.
Since its inception the portfolio has grown to have a current market value in excess of $500,000,000. This has enabled IOOF to construct a well-diversified and balanced portfolio with a large and diversified range of tenants. The portfolio construction emphasises sustainable economic returns which have proven to match investors’ expectations and needs from the property asset class.
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Australian direct property portfolio
Properties by state Allocation by property type as at 30 June 2020
South Australia: 1 O I O New South Wales: 6 I I I Victoria: 11
Total: 18 O I O I O I Area (sqm) 131,001 sqm O
I O I O O I O I I
NEW SOUTH WALES
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SOUTH AUSTRALIA 11 VICTORIA IOOF | Investing in Australian Direct Property
149 Flinders Street Adelaide, South Australia
Property Class: Commercial Property Value: $17,900,000 (as at June 2020) Purchased: October 2019 Description: The commercial property is five years old and designed and built to a very high specification. The building is leased to VOCUS Telecommunications, Cushman & Wakefield and Newmarket Grandwest. The building is in a location in the Adelaide CBD and in close proximity to all Adelaide Transport, infrastructure, shops and amenities. Number of Tenants: Ten Major Tenants: VOCUS, Cushman & Wakefield, Newmarket Grandwest and SNAP Printing.
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87-107 Toll Drive Altona North, Victoria
Property Class: Industrial Property Value: $9,300,000 (as at July 2020) Purchased: January 2018 Description: The industrial property was purchased during construction with settlement in January 2018. The building is leased to Arrow Worldwide and Supercheap Storage who have entered into long term leases. The tenant Arrow Worldwide also occupies the neighbouring property which is also part of the Property Plus Trust. The building is in a prime industrial location being in close proximity to the Port of Melbourne and major transport corridors. Number of Tenants: Two Major Tenants: Arrow Worldwide and Supercheap Storage.
96-118 Toll Drive Altona North, Victoria
Property Class: Industrial Property Value: $12,100,000 (as at July 2020) Purchased: September 2017 Description: The building is fully leased to Arrow Worldwide. The property was specifically built for Arrow Worldwide’s container management and distribution needs. Arrow Worldwide has expanded into the neighbouring property at 87 Toll Drive, which is also part of the Property Plus Trust The building is in a prime industrial location being in close proximity to the Port of Melbourne and major transport corridors. Number of Tenants: One
Major Tenants: Arrow Worldwide.
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30 Janefield Drive Bundoora, Victoria
Property Class: Commercial Property Value: $28,400,000 (as at June 2020) Purchased: December 2017 Description: The office block is only three years old and is located in close proximity to the RMIT university campus. Number of Tenants: Eight Major Tenants: RMIT University and Royal District Nursing Services.
195 Wellington Road Clayton, Victoria
Property Class: Commercial Property Value: $24,800,000 (as at March 2020) Purchased: April 2018 Description: This modern commercial property is centrally located in Clayton Business Park south east of Melbourne. Number of Tenants: Three Major Tenants: Canon and CSIRO
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200 Australis Drive Derrimut, Victoria
Property Class: Industrial Property Value: $26,600,000 (as at December 2019) Purchased: December 2011 Description: The property is located in the highly sought after western industrial region of Melbourne and comprises a prime, high clearance warehouse facility. Number of Tenants: Two Major Tenants: Camerons Transport and Australia Post 45 Assembly Drive Dandenong, Victoria
Property Class: Commercial Property Value: $24,400,000 (as at June 2020) Purchased: September 2016 Description: The high-quality asset was built by Cbus in mid-2014 and is located in a strong economic growth corridor south east of Melbourne. The anchor tenant is the government entity Country Fire Authority (CFA) which occupies the bulk of the building on a 15-year lease. A State Government Authority (ERMHA) lease one whole floor and the majority of ground floor is leased to Westpac. Number of Tenants: Four Major Tenants: Country Fire Authority (CFA), ERMHA and Westpac
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178 Power Street Glendenning, New South Wales
Property Class: Industrial Property Value: $17,200,000 (as at June 2020) Purchased: July 2012 Description: The property is located in the central western industrial corridor of Sydney and comprises a prime, high clearance warehouse facility constructed in June 2013. Purchased during construction by Property Plus, the asset was fully leased for ten years upon completion. Number of Tenants: One Major Tenants: Preformed Line Products Australia
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295 Springvale Road Glen Waverley, Victoria
Property Class: Commercial Property Value: $28,500,000 (as March 2020) Purchased: March 2015 Description: The asset comprises of commercial property and is located in a prominent position on Springvale Road in Glen Waverley, opposite the local council chambers. Number of Tenants: Six Major Tenants: Minister of Education and Monash City Council.
108 Power Street Hawthorn, Victoria
Property Class: Commercial Property Value: $30,000,000 (as at April 2020) Purchased: June 2012 Description: The property comprises a highly specified, modern commercial office building located on Power St Hawthorn. Hawthorn is one of Melbourne’s premier suburban office locations and has benefited from substantial tenant demand and rental growth. Number of Tenants: Five Major Tenants: AV Jennings and Xero
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3 Horwood Place Parramatta, New South Wales
Property Class: Commercial Property Value: $46,500,000 (as at April 2020) Purchased: February 2015 Description: The property is located on Horwood Place in heart of Parramatta the economic hub of western Sydney. The asset is leased to multiple tenants over 7 levels with 3 levels of car parking. Number of Tenants: Fourteen Major Tenants: Cushman & Wakefield, Northrop Engineering, Marsh Insurance and William Buck 18 Honeysuckle Drive Newcastle, New South Wales
Property Class: Commercial Property Value: $52,200,000 (as at March 2020) Purchased: August 2019 Description: The property was built in 2017 to a high specification and is well located on the Honeysuckle Precinct of the Newcastle CBD waterfront. The building is occupied by a diverse range of quality corporate and government tenants with a strong lease expiry profile. Number of Tenants: Seven Major Tenants: Property NSW, Southern Cross Austereo and McDonald Jones Homes.
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9 Orielton Road Smeaton Grange, New South Wales
Property Class: Industrial Property Value: $24,300,000 (as at May 2020) Purchased: December 2008 Description: The property is located in the highly sought after South Western industrial corridor of Sydney and comprises a single tenant, high clearance warehouse. Bridgestone has occupied the entire asset since construction. Number of Tenants: One Major Tenants: Bridgestone
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22 Enterprise Drive Rowville, Victoria
Property Class: Commercial Property Value: $27,700,000 (as at December 2019) Purchased: January 2016 Description: The Property Plus trust purchased the land and the building was developed by Australand Property with completion in December 2016. The commercial building comprises of 4000sqm of office accommodation over 2 levels with 333 car spaces. The property was fully pre-leased to Repco for 12 years from December 2016. Number of Tenants: One Major Tenants: Repco 88 Phillip Street Parramatta, New South Wales
Property Class: Commercial Property Value: $50,000,000 (as at April 2020) Purchased: December 2013 Description: The property comprises a commercial building located on Phillip St, Parramatta on the banks of Parramatta River, close to the Parramatta river-cat wharf. The asset is fully leased to eight tenants over 6 floors. Parramatta is one of Australia’s premier metropolitan business district office locations. Number of Tenants: Eight Major Tenants: Lendlease and Burbank Homes
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107 Pitt Street Sydney, New South Wales
Property Class: Commercial Property Value: $90,000,000 (as at February 2020) Purchased: December 2012 Description: The property comprises a commercial building located on Pitt St, Sydney near the intersection of Hunter St. Redeveloped in 2003, the asset is fully leased to eight tenants. The property is located in the immediate proximity of Wynyard train station. Pitt Street is one of Sydney’s premier central business district office locations Number of Tenants: Eight Major Tenants: NAB and National Party of Australia.
1 Saintly Drive Truganina, Victoria
Property Class: Industrial Property Value: $36,500,000 (as at May 2020) Purchased: October 2012 Description: The property is located in the highly sought after western industrial corridor of Melbourne and comprises a prime, high clearance warehouse facility constructed by Australand. The long term lessee is Catchoftheday, one of largest on line sales organisations in Australia Number of Tenants: One Major Tenants: Catchoftheday.com
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115 Batman Street West Melbourne, Victoria
Property Class: Commercial Property Value: $23,250,000 (as at March 2020) Purchased: September 2018 Description: The property is well located on the western Melbourne CBD fringe. The interior, mechanical services upper floors are of very modern design having been built by global and leading engineering consultancy Norman Disney & Young for their own occupation as their national head office. Number of Tenants: Two Major Tenants: NDY Management
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Portfolio Valuation Summary (as at 31 July 2020)*
Property Value $ Area (sqm) Adelaide $17,900,000 2,114 Altona North, 96-118 Toll Drive $12,100,000 5,175 Altona North, 87-107 Toll Drive $9,300,000 6,503 Bundoora $28,400,000 3,960 Clayton $24,800,000 4,239 Dandenong $24,400,000 4,490 Derrimut $26,600,000 21,621 Glendenning $17,200,000 7,299 Glen Waverley $28,500,000 4,549 Hawthorn Power Street $30,000,000 3,739 Newcastle $52,200,000 6,525 Parramatta, Horwood Place $46,500,000 5,013 Parramatta, Phillip Street $50,000,000 5,256 Pitt Street, Sydney $90,000,000 3,171 Smeaton Grange $24,300,000 14,060 Rowville, Repco $27,700,000 4,080 Truganina $36,500,000 26,417 West Melbourne $23,250,000 2,790 Total Portfolio $ 569,650,000 131,001 sqm
* Total portfolio value calculated following the valuation of 87-107 and 96-118 Toll Drive Altona North, Victoria on the 31st of July 2020.
You can access exposure to the Australian direct property portfolio through our multi-manager diversified funds: IOOF MultiSeries and IOOF MultiMix. To find out more about an investment solution that’s right for you, please speak to your financial adviser, contact 1800 002 217 or visit ioof.com.au/investments
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