Fund ramps up exposure to growing self-storage sector

Brisbane-based property fund manager Natgen has further diversified into the fast-growing Gold Coast self-storage market, with the settlement of the $4.5m land acquisition for its latest property trust.

The fund manager, through its Natgen Development Trust ML23, will develop a high specification, state-of-the-art self storage building and surrounding facilities at 2 Industrial Ave, Molendinar. On a 4520sq m site the building will house more than 5250sq m of self-storage units, incorporating an office/retail space, parking, security and landscaping.

The acquisition follows the success of its previous investment in Gold Coast self-storage at Upper Coomera, with last year’s $10m Natgen Development Trust UC22 closing fully subscribed.

Natgen managing director and responsible manager Steven Goakes said the South East Queensland self-storage market offered an attractive opportunity for investors, based on its strong economic fundamentals. “Self-storage is a growth industry in Australia due to the rise of e-commerce, shrinking living spaces and sustained population growth, particularly in South East Queensland,” he said.

“The Molendinar facility’s central Gold Coast location and the strong demand factors have given us confidence in the facility’s long-term performance and our ability to maximise returns for our investors, with this type of asset also acting as a hedge against inflation.”

The trust will build and operate the facility for a five to seven-year period following completion, with total assessed completed value of $22.9m and investors contributing $8m. It offers investors a targeted distribution of 8.46 per cent in the first year of operation, rising to 8.62 per cent in year two.

Mr Goakes said Natgen was focused on risk-managed investments that offered regular monthly income, an inflation hedge, low volatility and growth. “This acquisition provides further diversification for our investors and we look forward to completing this exciting development,” he said.

Brisbane-based property fund manager Natgen has acquired a Herbert Street building for $9.28 million

The building currently houses five Queensland Government departments with a total 2,026 square metres, with a weighted average lease expiry of approximately six years.

A total of 95 per cent of income for the building comes from Queensland Government and Australian Government leases.

The trust fully subscribed under its unlisted property fund Natgen Investment Trust GL22 after attracting strong demand from property investors.

Natgen Managing Director Responsible Manager, Steven Goakes said the positioning of the building within dynamic region with renewable energy prospects, together with the predominantly government tenants, made it an attractive asset for a Natgen investment trust.

“The industrial strength of the region and large scale investment in renewables within the region place this asset well within the Natgen portfolio,” he said.

“The five-star NABERS energy efficiency rating of the building is central to the continuing attractiveness of the building for government tenants.

“Natgen has plans to improve the building over time to build upon its sustainability credentials.

“In fact, both state and federal governments have internal mandates requiring buildings which they occupy to hold high energy efficiency ratings. With the push to early carbon-neutrality, these requirements will grow in importance.”

Mr Goakes said the terms of lease will remain the same.

The latest property trust launched by Natgen adds to its previous funds which contain assets in Goodna, Toowoomba, Upper Coomera, Inverell and Gold Coast.

Natgen has executed a broad range of investment and development projects across a range of sectors, including commercial, retail, industrial and residential property.

Fund snares green government tenanted Gladstone office asset

BRISBANE based property fund manager Natgen has expanded its regional portfolio, buying a government tenanted office building near the heart of the Gladstone CBD. They paid $9.28m for the building at 20-22 Herbert St (pictured) through their latest unlisted property trust fund, Natgen Investment Trust GL22. The building houses five Queensland government departments and has a total tenancy area of 2026sq m, with a weighted average lease expiry of about six years.

Natgen managing director & responsible manager Steven Goakes said the building being in a “dynamic region”, together with the predominantly government tenants, made it an attractive asset.
“The industrial strength of the region and large scale investment in renewables place this asset well within the Natgen portfolio,” he said. “Also, the 5-star NABERS energy efficiency rating of the building is central to its continuing attractiveness for government tenants.” Natgen Investment Trust GL22 closed fully subscribed. It offers investors an initial distribution of 7.52 per cent a year over a five to six-year term.

Natgen Seeds Fund with Inverell Mall

Brisbane based fund manager National & General Group, or Natgen, will seed its first interstate trust with a regional New South Wales centre acquired for $11.305 million earlier this year.

Central Plaza, covering 23 Lawrence Street and 101-121 Byron, at Inverell, about 80 kilometres south of the border, was offloaded by a syndicate at a 6.75 per cent capitalisation rate.

With 5365 square metres, anchored to Supa IGA, it includes 15 specialty stores, some occupied by medical and education groups; the Weighted Average Lease Expiry is 2.9 years.

The 6048 sqm site contains 112 car parks.

Inverell’s economy contributes about $26.8 billion per year – about 10pc of the shire’s output; Gross Domestic Product has grown 3pc annually since 2015, Natgen managing director, Steven Goakes, said.

The Inverell Shire Council is recognised for its economic diversity – with established agriculture, education, manufacturing and mining sectors – but no one industry accounting for more than 20pc of employment, he added.

Boss Engineering, Bindaree Food Group and the Inverell Regional Livestock Exchange are amongst the precinct’s biggest businesses.

Single-asset fund closed oversubscribed

Central Plaza will be held by the Natgen Investment Trust IR22, which closed oversubscribed earlier this year (story continues below).

The manager intends to own between five and six years, during which time it aims to distribute unitholders 8.5pc, per annum.

Natgen controls three funds, all of which are single-asset backed:

• Natgen Investment Trust GD21, with the Rededge Shopping Centre in Goodna, south west of Brisbane, acquired for $10.1m last November;
• Natgen Investment Trust KT21, also holding a convenience retail and medical centre, but worth $6m, in Kingsthorpe, west of Toowoomba, and the
• Natgen Development Trust UC19, which owns a $5.25m office/warehouse at Upper Coomera, a north Gold Coast suburb.

“The COVID-19 pandemic has reinvigorated interest in strong regional economies, with population growth expected to increase in these areas,” Mr Goakes said.

“As a significant shopping centre with a stable retail mix, Central Plaza Inverell contributes to the town’s position as a retail and services hub, with the area’s prosperity underpinning its growth prospects,” he added.

Melbourne based Leiba Commercial’s Mark Leiba and Jonathan Rosenthal brokered the Central Plaza sale.

Ray White Inverell’s Ron Berkeley has been retained as centre manager.

As seen in the Realestate Source

Purchase of Plaza in new chapter for town

INVERELL’s Central Plaza is ready for the next chapter in its long-standing history in the Sapphire City, proving popular with not just local investors, but investors right across Australia.

Popularity which has enabled interstate property trust, Natgen, to complete their purchase of the building. This move is also a historic one for Brisbane-based property fund manager, as it marks their first successful interstate expansion.

The Central Plaza was purchased for $11.3 million and will be a part of its latest unlisted property trust fund, Natgen Investment Trust IR22. Ron Berkley at Ray White Inverell has been retained to ensure continuity of the centre management. It’s the company’s fourth property trust, closing closing fully subscribed after attracting strong demand from property investors.

Natgen told the Times that the property proved so popular, it actually was over subscribed with interest occur-ring right across the country. It offered investors a targeted distribution of 8.5 percent per annum over a five to six-year term. Natgen Managing Director and Responsible Manager, Steven Goakes said the shop-ping centre’s position with in a diverse regional economy made it an attractive investment.

“The COVID-19 pandemic has reinvigorated interest in strong regional economies, with population growth expected to increase in these areas,” he said. “As a significant shopping centre with a stable retail mix, Central Plaza Inverell contributes to the town’s position as a retail and services hub, with the area’s prosperity underpinning its growth prospects.”

Natgen has committed to spending locally wherever possible, and has joined the Inverell business chamber and met with council as part of its stakeholder engagement.  The investment fund opened in February, the minimum investment amount set at $100,000.  Mr Goakes said Inverell had all the elements the company looked for in an in-vestment that would provide a steady income. 

Among key local Inverell businesses are Boss Engineering, Bindaree Food Group and Inverell Regional Livestock Exchange, while Central Plaza Inverell hosts tenants such as Regional Australia Bank, Lyon Legal, Pathology NSW and Vital Health, together with the anchor tenant of Richies Supa IGA Inverell and other businesses. “This latest acquisition ticks all these boxes and we are delighted to have secured this property for the benefit of our investors. “The retention of the CBD was a plus for the town, Mr Goakes said.

As seen in The Inverell Times

Natgen goes interstate for Inverell site

Brisbane-based property fund manager Natgen has expanded interstate, acquiring Central Plaza Inverell in Inverell, New South Wales for $11.3 million for its latest unlisted property trust fund, Natgen Investment Trust IR22.

The property was brought from a group of local investors. Natgen’s fourth property trust is its first outside Queensland, closing fully subscribed after attracting strong demand from property investors.

It offers investors an attractive targeted distribution of 8.5 per cent per annum over a five to six year term. At 101-121 Byron St, Central Plaza Inverell comprised a Supa IGA supermarket and 15 supporting tenancies, including retail, commercial, food, medical and educational services. The total tenancy area is 5365 square metres, with a weighted average lease expiry of 2.9 years.

As seen in The Australian Financial Review

Brisbane based property fund manager Natgen recently acquired Central Plaza Inverell in New South Wales. The property is some 300km west of Coffs Harbour, or 150km to the Queensland-New South Wales border,

The $11.3 million acquisition will go into the Natgen Investment Trust IR22 and will be the company’s first trust outside Queensland.

The property offers investors a targeted distribution of 8.5 per cent per annum over a five to six-year term.

Located at the centre of town along 101-121 Byron Street, the Central Plaza Inverell comprises a Supa IGA supermarket and 15 supporting tenancies, including retail, commercial, food, medical and educational services.

The plaza is host to businesses including Regional Australia Bank, Lyon Legal, Pathology NSW and Vital Health, together with the anchor tenant of Richies Supa IGA Inverell and other businesses.

The total tenancy area is 5,365 square metres, with a weighted average lease expiry of 2.9 years.

Central Plaza Inverell is expected to benefit from a push to the regions, said Natgen Managing Director & Responsible Manager, Steven Goakes:

“The COVID-19 pandemic has reinvigorated interest in strong regional economies, with population growth expected to increase in these areas,” he said.

“As a significant shopping centre with a stable retail mix, Central Plaza Inverell contributes to the town’s position as a retail and services hub, with the area’s prosperity underpinning its growth prospects.”

Inverell is situated in the New England region of northern NSW, and benefits from a broad-based economy including agriculture, mining, manufacturing and education, with no industry sector accounting for more than 20% of employment in Inverell Shire.

Gross regional product has grown by around 3 per cent per annum since 2015, with Inverell Shire accounting for around 10 per cent of total regional output of $26.8 billion.

As seen in The Property Tribune

Investors wanted for Central Plaza buy-in

AN ESTABLISHED property fund management company is looking for local investors to help with an offer market purchase of Inverell’s Central Plaza for $11.3 million.

Natgen was established in 2019, and this is the fourth syndicate property trust they have formed, but the first outside of Queensland. The Inverell fund will be structured with a debt ratio of 55 per cent – $6.2 million will be borrowed, and $6.6m will come from investor capital – with 20 per cent of that equity from local investors.

NatGen managing director Steven Goakes said his team provided their clients with well-considered, risk-man-aged investment opportunities. Mr Goakes said Inverell had all the elements the company looked for in an in-vestment that would provide a steady income.

“We came to Inverell through an analysis of where we see value in investing,” Mr Goakes said. “We were aware of the diversity of the economy, and it is quite good value purchasing with little opportunity to build competitive centres at a similar price.”

The retention of the CBD was a plus for the town, Mr Goakes said, as was water security and the range of big employers – Boss Engineering, Bindaree Beef, IRLX at the saleyards, mining, solar and wind farms. In fact, he worked for the company which helped set up the IRLX, so he was already familiar with the local business demographic.

“It all adds up to a good di-verse economy with no part of the economy more than 20 per cent of the total production of the area,” he said. “So we see the centre having the opportunity to grow. We’re very keen to keep that feeling of community around the CBD.”

Mr Goakes said online shopping was mainly a problem for big retail, not the local shops. “The sort of local retail, which is what Inverell is all about, it is going to remain strong because people still need to go and shop some-where and have interactions,” Mr Goakes said. “The human need to be together is one of the things that keeps local shopping strong and will continue to do so.”

NatGen has joined the local business chamber, and Mr Goakes has met with the council. The company also has a firm policy on spend-ing money locally. They will retain the current local manager Ron Berkley at Ray White once the deal is settled in April 2022 and use local business whenever possible.

“If we can get something in the local district, that’s no more than 105 per cent of what we can get it for else-where, we’ll spend the extra five per cent to buy local,” he said.The investment fund is now open and will close in six weeks. The minimum invest-ment amount is $100,000.

About Natgen

Based in Brisbane, Qld, Natgen (National & General Group) is an active fund manager and corporate strategy group employing established principles and processes to maximise value for investor clients and strategy clients. Natgen provides tailored solutions for clients, including Australian financial services institutions, high net worth individuals, family offices, sophisticated and professional investors and private clients.

Founder Steven Goakes boasts a 30-year career focused on commercial real estate, funds management, compliance, corporate governance and law. He has managed investment assets in excess of $1 billion, overseen the purchase of $1 billion in commercial properties and participated in joint venture developments totalling more than $400 million in gross realisation.

National & General Administration Pty Ltd, a member company of the Natgen group, holds Australian Financial Services Licence No. 522835 and is authorised to advise on and operate wholesale managed investment schemes and provide custodian services.

For 2022 Natgen opportunities, please visit: https://natgen.com.au/investment-opportunity/

Big money deals display rising confidence in retail

Sophisticated and institutional investors are backing a retail property revival, with a spurt of major transactions indicating increased confidence in the sector.

The flurry of interest in retail assets is being underpinned by rising confidence among Australian retailers, who are looking forward to bumper trading conditions in the lead-up to Christmas.

A recent survey of Australian retailers by Deloitte showed 80 per cent expected sales growth in 2021, with more than half expecting sales to bounce back rapidly with Melbourne and Sydney now out of lockdown.

Nearly 90 per cent of respondents said they expect trading conditions to improve over the next 12 months.

Highlighting recent transactional activity was Hong Kong-listed Link Asset Management splashing $538.2 million on a 50 per cent share in three prominent retail properties in the heart of the Sydney CBD.

The assets, comprising the Queen Victoria Building, The Galleries and The Strand Arcade, will continue to be managed by shopping centres giant Vicinity Centres under a strategic partnership.

Link Asset Management chief executive George Hongchoy said the portfolio had been offered to the market for the first time.

“Given the high occupancy rate filled with leading Australian and international brands, the portfolio is well-positioned to capture the retail rebound with the improving consumption sentiment in the country,” Mr Hongchoy said.

“Coupled with the strategic partnership with a leading retail asset manager in Australia, we believe both parties will jointly enhance the portfolio to ensure these landmark assets will deliver the best retail experience to all shoppers and unlock their long-term growth potential.”

The transaction is expected to settle by the first half of next year.

Meanwhile on the Gold Coast, Sunland Group sold the yet-to-be-built The Lanes retail village at Mermaid Beach to retail investment specialist Panthera Group, in a deal worth $45.8 million, brokered by Kollosche Commercial.

The Lanes is proposed to be a 12,500 square metre shopping precinct that will feature a fresh food market hall, cafes, restaurants, a medical centre and office space.

Commercial agent Adam Grbcic of Kollosche said the sale was one of several Gold Coast retail properties that changed hands in October, following the sale of a majority stake in Pacific Fair for $2.2 billion, and a 50 per cent stake in Harbour Town for $385 million.

“Panthera has correctly identified the Gold Coast can do with an injection of high-quality retail offerings, particularly when underpinned with apartments,” Adam Grbcic said.

“We were able to show to Panthera the sector has strong long-term growth prospects, particularly when interstate and international travel opens up.

“We have seen a massive vote of confidence in the retail sector with Cbus Super and UniSuper taking a majority stake in Pacific Fair and Vicinity Centres buying a half share of Harbour Town.

“The sale of The Lanes centre, which is likely to be completed in 2023 or 2024 is further proof the sector is in good health.”

Kollosche’s Tony Grbic said there were several solid market fundamentals that were underpinning the growth cycle in big retail assets.

“This isn’t like the boom and bust cycles of the past,” he said.

“Investors who have sold off residential properties are looking to invest their cash in commercial assets that come with high yields in a place which hasn’t been as affected as Sydney and Melbourne with lockdowns.

“All this means is the future prospects are looking excellent.”

Tony Grbic said the Gold Coast’s residential property boom had piqued the interest of a range of developers, with residential players scrambling for sites from Broadbeach to Coolangatta.

“This residential market is fueling interest in retail investments, which makes sense because the retail pie is getting larger to meet the increased demand from residents and visitors,” he said.

Also changing hands this week was the Rededge Shopping Centre Goodna, located in Brisbane’s west.

Brisbane-based syndicator NATGEN Group purchased the centre off-market for $10.1 million, in a deal brokered by Savills National Retail Investments.

The purchase price reflected a yield of approximately 6 per cent.

Savills’ Jon Tyson said convenience based centres such as Redege, which is anchored by an IGA Supermarket, had become highly sought-after.

Managing director of NATGEN Group, Steven Goakes, said the centre matched its strategy of acquiring low-risk retail assets anchored by consumer staples, medical centres and food-based retailers.

Another indication of rising confidence in the retail sector was Churchill Development Group’s move to seek approval to build a $50 million shopping centre in the Gold Coast suburb of Ashmore.

Churchill lodged a development application this week for a premium retail and food marketplace, in collaboration with Steer Developments.

The site was once home to the renowned Ashmore Seafood and Steak restaurant, with the developers to pay homage to its gastronomic heritage.

“Renowned local restaurateurs Nick and Jim Carkazis spent decades building this site into a ‘must-go’ food destination,” Churchill Development Group executive director Jonathan Leishman said.

“Why change it? In fact, we want to build on their legacy and shape the site into a food emporium and retail destination like no other on the Gold Coast.”

Mr Leishman said even prior to the project being built, significant interest was pouring in from prospective tenants.

“We understand that in the past, Gold Coast Mayor Tom Tate used to frequently drop in to enjoy a steak here,” he said.

“By the end of 2023, we hope Tom will be back at Reed Street to again enjoy some of the best produce the Gold Coast has to offer.”

While the majors have been making moves, commercial investment specialists Scott & Mina O’Neill, founders of Rethink Investing, said individual investors were also increasingly interested in strong-performing retail properties.

Mr O’Neill said fast food properties tenanted by well-known brands were subject to unprecedented demand, a trend that kicked off at the onset of the pandemic.

“These well known fast-food giants are often referred to as a ‘defensive’ style of investment, as they offer you great defence against fluctuations in the economy,” he said.

“In recent times, properties such as KFC or Hungry Jacks have started trading as low as 3 per cent net yields on the sale price.

“For someone to accept such a low yield is a reflection of the strong security you can expect from the asset class.

“We like purchasing these properties when they are at the right yields as they will deliver unrivalled returns.

“Yields for the fast-food assets that we source for our clients range from 5 per cent to 6 per cent net.”

Dan Wilkie
As featured in the Australian Property Investor magazine

Natgen acquires $10.1M Goodna shopping centre

BRISBANE, November 15, 2021: Brisbane-based property fund manager Natgen has acquired Rededge Shopping Centre in Goodna, Queensland for $10.1 million for its latest unlisted property trust fund, Natgen Investment Trust GD21.

Launched in August 2021, the Natgen Investment Trust GD21 closed fully subscribed in September, offering commercial property investors an attractive targeted distribution of 8.2 per cent per annum over a five-year term.

Located at 123 Queen St, the shopping centre spans 5,702 square metres and is anchored by an IGA convenience centre, with medical service providers, bakery and other retail businesses in fast-growing Goodna, an established dormitory area for the Brisbane/Ipswich corridor.

The centre features a long lease expiry profile of over 7.1 years (area) with all tenants secured on attractive net lease structures. The complex occupies a prominent position within the town, with easy access and exposure to a major thoroughfare, Queen St, which carries more than 20,000 vehicles each day.

Goodna has been identified as one of eight major activity centres for the South East Queensland Transport Network Strategy, with population forecasts identifying its location within the Brisbane/Ipswich corridor as a high growth zone.

Natgen Managing Director & Responsible Manager, Steven Goakes said the shopping centre was an attractive investment opportunity for the fund’s investors.

“Rededge Shopping Centre is located in a high-profile corner of Goodna and boasts a strong mix of convenience retail, medical and food service tenants that make it an indispensable part of residents’ livelihoods,” Mr Goakes said.

“The centre is well placed to benefit from the Ipswich region’s projected population growth, from 229,000 in 2020 to 557,000 residents by 2041, and with consistent economic growth averaging 3.4 per cent a year over the past decade.

“We are delighted to have secured this opportunity for our investors, with the complex acquisition in line with the current Natgen acquisition theme of seeking properties with tenants in low elasticity demand retailing, such as consumer staples, medical and convenience stores.”

With future infrastructure provision including the Springfield/Brookwater/Redbank Plains Transport strategy and the University of Southern Queensland Ipswich/Springfield Growth strategy, the area is set for additional growth with the shopping centre expected to benefit.

The Goodna acquisition adds to Natgen’s other previous acquisitions, including Kingsthorpe Central at Kingsthorpe, Qld which was purchased for $6 million in April 2021 for the Natgen Investment Trust KT21.

With experience in managing investment assets exceeding $1 billion, Natgen has a track record of investment success, with experience executing a broad range of investment and development projects across a range of sectors, including commercial, retail, industrial and residential property.

About Natgen

Based in Brisbane, Qld, Natgen (National & General Group) is an active fund manager and corporate strategy group employing established principles and processes to maximise value for investor clients and strategy clients. Natgen provides tailored solutions for clients, including Australian financial services institutions, high net worth individuals, family offices, sophisticated and professional investors and private clients.

Founder Steven Goakes boasts a 30-year career focused on commercial real estate, funds management, compliance, corporate governance and law. He has managed investment assets in excess of $1 billion, overseen the purchase of $1 billion in commercial properties and participated in joint venture developments totalling more than $400 million in gross realisation.

National & General Administration Pty Ltd, a member company of the Natgen group, holds Australian Financial Services Licence No. 522835 and is authorised to advise on and operate wholesale managed investment schemes and provide custodian services.

For 2022 Natgen opportunities, please visit: https://natgen.com.au/investment-opportunity/