CASE STUDY

LF Melrose Park Trust

Bennet Street, Melrose Park, SA

$3.15

UNIT PRICE $1 Acquisition

32.9%

IRR *As at Jun-25

10%

FY25 AVERAGE DISTRIBUTION

49.7%

LVR

1.26%

DEBT MARGIN

Origination

  • Acquired 34 Bennet for $5.3 million (Oct 20).
  • Acquisition pricing well below the equivalent replacement cost.
  • WALE of 2.6 years at purchase.
  • Passing rents below market.
  • High quality office/warehouse complex in Adelaide’s high-performing inner-south industrial precinct.

Strategy

  • Realise the opportunity for rental growth at near-term lease expiry.
  • Exploit shortage of good quality space in the location to drive rent and value.
  • Reset leases with minimal downtime.
  • Improve capital value through rental uplift and increasing WALE.

Execution

  • Targeted leasing campaign to attract new tenants and leverage competitive tension in negotiations with existing tenants.
  • Direct negotiation with existing tenants to remain at the property.
  • Pursued negotiations to extend lease terms across all units and improve WALE.
  • Off market purchase of adjoining property in June 2025 – 32 Bennet for $5.3m, 100% debt funded.

Result

  • Acquired adjoining property for $5.3 million.
  • New acquisition increased total buildings to 5,566sqm and landholding to 9,114sqm, creating corner site.
  • Zero additional equity invested; combined valuation of $16.95 million.
  • Increase portfolio WALE to 3.42 years.
  • Equity Multiple 3.15x; 10%+ annual distributions (post fees).