Asahi Beverages’ Brisbane syndication
New Zealand syndicator Silverfin Capital is entering the Australian property market with an offer to invest in Asahi Beverages manufacturing facility in Brisbane.
Silverfin has appointed Colliers International to market the Brisbane Terrace Partnership — a limited liability partnership that will give investors a beneficial interest in the land and buildings at 316 Brisbane Terrace.
The 2.32ha property in Brisbane’s Western Corridor industrial precinct is on a 10-year lease to Asahi Beverages, a member of Asahi Group Holdings, one of Japan’s leading beverage companies, says Silverfin managing director Cheryl Macaulay.
The company comprises some of Australia and New Zealand’s most successful beverage businesses, including Schweppes Australia, Asahi Premium Beverages, Independent Liquor and The Better Drinks Co.
Asahi Group Holdings has a market capitalisation of NZD$30.8 billion, and employs more than 31,600 people worldwide across 147 subsidiaries.
Macaulay says 133 interests of A$50,000 each are being offered to investors.
“We’re projecting a minimum pretax cash return of 8.65 per cent a year until 30 June 2019.
“This is an excellent opportunity to invest in a well-located industrial property with a strong tenant covenant and built-in rental growth of 3.5 per cent a year,” she says.
Colliers syndications director Charlie Oscroft says Asahi has recently invested more than A$30 million modernising its production facilities, including a new production line, stainless steel tanking system, epoxy flooring, automatic rapid doors and an automatic rolling dock system.
“Asahi and its predecessors have been on the site for more than 25 years, and the company’s recent significant capital expenditure shows a clear long-term commitment to the property,” he says.
“The tenant still has almost seven years remaining on its current lease, which commenced in August 2014, after which it has two rights of renewal of between three to five years each, at the tenant’s option.”
The lease is returning A$803,419 per annum plus GST, with rental increases fixed at 3.5 per cent a year. There are rent reviews to market on renewal of the lease.
Oscroft says the property is within the popular Goodna-Redbank industrial area, 26km southwest of Brisbane CBD and 13km northeast of the satellite city of Ipswich.
“The property’s sought-after Western Corridor location has increased in desirability thanks to the recent completion of the Monash Rd overpass, which links with the Ipswich Motorway,” he says.