LF Beverley Trust

113 Ledger Road, Beverley, SA

Origination

• Off-market purchase for $14.225m (Jan-23).
• High quality office/warehouse of 8,000 sqm.
• 1.6 hectare land holding in inner-west logistics location, close to CBD, airport and key transport routes.
• Short WALE (1.6 years), with passing rent below market level providing an opportunity for near-term positive rental reversion.
• Acquisition pricing well below the equivalent replacement cost.
• Independent valuation of the property 7.2% ($1.025m) higher than purchase price.

Strategy

• Realise the opportunity for rental growth at near-term lease expiry.
• Exploit shortage of good quality logistics 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.
• Undertook CAPEX to improve the property and increase potential rental.

Result

• Executed new five-year leases with two existing tenants, achieving rents 22% above passing.
• Zero vacancy downtime, and no further capital investment required for upgrade works.
• No lease incentives paid.
• Property valued in Oct 2024 at $18.7m – 31% uplift on the acquisition price.