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Harmony Industrial Property Fund 2 Completed

Two final acquisitions complete the Fund, valued at $63 million.

The Harmony Industrial Property Fund No. 2 has now been completed after two final acquisitions in December 2020 of 585 Mersey Road, Osborne SA and 20 Southlink Street, Parkinson QLD.

585 Mersey Road was purchased for $4.45 million in an off-market transaction brokered by Jay Nash of Colliers, at a yield of 7.09%. Comprising 13,200 sqm of industrial land, the property is fully leased to two tenants which occupy a combined 2,848 sqm of building area and is well positioned adjacent to the newly developed Osborne Naval Shipyard.

20 Southlink Street was purchased in an off-market transaction for $8.74 million, with a yield of 5.25%. The property comprises a modern office warehouse of 3,300 sqm, contained within a 10,000 sqm allotment and is fully leased to an international supply chain platform producer.

These acquisitions take the total value of the Harmony Industrial Property Fund No. 2 to $63 million, with six properties benefiting from risk diversification of ten tenants across four states providing a combined WALE of 5 years (by income). The average earnings of this Fund are now expected to be approximately 9.5% p.a., anticipated to outperform the original average earnings estimate of 8.0% pa.

The completion of this Fund takes Harmony Property Investments total Funds under Management to $680 million with $68 million in acquisitions for 2020/21 to date.