SOLD – LFM Long WALE Trust No.1

Gawler, SA and Griffin, QLD

Origination

• Acquired two properties off-market (QLD & SA) on a fund-through basis.
• Developer relationship, targeted assets underpinned by strong tenant covenants in non-discretionary sectors.
• Portfolio acquisition price of $11.2 million (December 2020).
• Brand new high-quality construction with significant building allowance and depreciation benefits.

Strategy

• Development & hold for rental income and capital growth.
• Long-term 15-year leases with fixed annual rental increases.
• Investment offering geographic, asset class and tenant diversity with complementary income profile to maximise returns.

Execution

• Fixed, pre-agreed purchase price supported by an independent valuation.
• No construction or leasing risk until completion of the building and commencement of the lease.
• Income distributions paid through construction from development coupon.
• Delivered to program with value appreciation prior to completion.

Result

• Held for 6 years for income distributions.
• Portfolio disposal June 2026 for $15.95m.
• IRR: 13.7% p.a.
• Unit Price Realised: $1.56.
• Average annual income distribution: 7%.