LF Melrose Park Trust

Bennet Street, Melrose Park, SA

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).