EG Expands Australian Core Enhanced Fund With Queensland Industrial Estate

EG Funds Management has secured a multi-let industrial estate at 140 Wecker Road, Mansfield, QLD for $32 million.

The asset is the fifth acquired for EG’s growing Australian Core Enhanced Fund (ACE) since it launched in June 2019.

The property is in the inner urban industrial precinct of Mansfield, 12km south east of the Brisbane CBD and 14km from Brisbane airport and Port of Brisbane. Other major occupiers in the industrial precinct include Australia Post, Toll and Storage King. The asset has a 2.0 year WALE and is currently 95% occupied.  

The property was developed by Pacific Properties in late 2018 and comprises 24 office/warehouse units ranging in size from 200m2 to 2000m2.

“The asset fits well with the Fund’s strategy to acquire industrial assets in land constrained markets with strong leasing fundamentals,” said EG’s ACE Fund Manager Michael Noblet.

EG ACE is an open-ended diversified fund targeting office, industrial and retail real estate in Australia. Its’ previous acquisition was of the Bunnings Rockdale site which it acquired for $48.7m in December.

The Fund’s strategy is to acquire well located assets where value can be added by implementing active asset management strategies.

Founded in 2000, EG has $3.2 billion under management on behalf of super funds and private wealth clients to generate outstanding returns with lasting social impact.

With $4.3 billion in development pipeline, and 16.7% per annum in realised IRR for institutional funds, EG is committed to finding a better path to better returns.

Our Views

The EG ACE fund was established in June 2019 with commitment from investors of circa $800m.

The Fund is a good value add fund with a strategy that fits EG’s skills and capability which exist particularly in identifying site where favourable planning outcomes could be achieved.

The EG ACE Fund targets office and industrial assets in Sydney and Melbourne with short term income which can be re-purposed or re-used for higher and better uses.

Other assets in the Fund include;

• 230 Captain Cook Dr, Kurnell, NSW for $36.0 million.
• 383-387 West Botany Street, Rockdale, NSW
• 5 Williamson Road, Ingleburn, NSW for $38.2 million

EG is also investing for GIC with a $400m for commercial, industrial and retail assets in close proximity to transport and community infrastructure in Sydney and Melbourne.