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.