OFM’s newly acquired property funds management arm Century Funds Management has bought beefed up its portfolio by spending $36.41 million on two properties.
Yesterday, OFM bought the West Gosford Bulky Goods Centre for $28.66 million from Valad Property Group and an office block in Artarmon for $7.75 million.
The West Gosford Bulky Goods Centre is located at 356 Manns Road, West Gosford in New South Wales was opened in 2003 and comprises 15,850 sqm of space with car parking for 354 vehicles.
The property is currently tenanted by 21 retailers including Decorug, Beacon Lighting, Super Cheap Auto, The Base Warehouse, Sleep City, Everyday Living, Timberland, Curtain Wonderland, Subway and 11 other stores.
Following the acquisition, Century will increase its funds under management to $580 million as well increase the number of bulky goods centre to four.
OFM Investment Group’s head of property Jason Huljich said the Artarmon purchase will be taken into Century Balanced Fund No 1, Century’s flagship diversified fund.
“Artarmon is well leased and has considerable potential, both as a passive investment, and with strata title conversion potential – something we have had considerable success with previously,” he added.
Meanwhile, the West Gosford centre had been structured as a standalone, close-end trust vehicle.
“This is a type of product which we will continue to present to our clients and we believe the West Gosford centre has considerable ongoing potential,” Huljich said.
Meanwhile, Valad’s chief executive Guy Farrands said the group is in the process of changing the composition and geographic footprint of its bulky goods portfolio.
“Our portfolio is becoming more national with recent additions in Toowoomba and Shellharbour,” he added.
Farrands said Valad will reinvest the capital into further bulky goods projects it has in its pipeline.
Valad is not selling its Bunnings Warehouse site in West Gosford which is next door to the bulky goods site on Manns Road.
Following the sale, Valad’s bulky goods retail portfolio includes the Shellharbour Interchange Homemaker Centre (NSW – to be branded Home Central); the Harvey Norman Centre in Toowoomba (Queensland); Home Central centres at Bankstown (NSW); McGrath’s Hill (NSW); and Kawana (QLD).
The portfolio also includes five Bunning Warehouses including Toowoomba (QLD), Oxley (QLD), McGrath’s Hill (NSW), West Gosford (NSW) and Moonah (TAS).
By Nelson Yap
