White Box recently completed its first major project being the acquisition of a modern logistics warehouse in the established industrial area of Broadmeadows in North Melbourne for $25.55 million. The asset was purchased on behalf of a Singapore based institutional investment group and includes a modern office and warehouse facility totalling 22,707m2 of net lettable area. The transaction was negotiated off-market from a local private developer Pelicano and provides an 8.0% net initial yield with the facility occupied by a Modern Baking Corporation a biscuit manufacturer for their production and distribution activities.
White Box was attracted by the following key attributes, which should underpin long term value;
Large scale modern warehouses are increasingly being sought after as more investors are looking to diversity their existing portfolio of Retail and Office investments. Modern warehouses are generally higher yielding than other commercial asset types and also take advantage of the changing retail landscape and additional need to store consumer goods remotely from shopping centres. The significant growth of online shopping, development of new technologies and the entry to Australia of major retail groups such as Amazon and COSTCO is further driving demand for new warehouse facilities.
The White Box partnership was formed at the end of 2016 with the principals of Box Capital, Matt Woodman and Sam Vincent. The business provides tailored investment solutions for institutional and high net worth investors in the Australian logistics sector. The specialist industrial team has a strong logistics track record and reputation with large institutional investors for the delivery of industrial investment products in Australia and Asia; for general advisory, investment transactions, development management and ongoing asset management.
Matt Woodman Sam Vincent