Forza Blackburn Fund

15-31 Alfred Street, Blackburn, VIC

Land Size43,046m²
Building Size21,947m²
Purchase DateDecember 2017
Purchase Price$31,500,000
Current Valuation$63,500,000

The Forza Blackburn Fund is an unlisted property fund which holds a massive 43,046m² (4.30 hectare) landholding at 15-33 Alfred Street and 10 Ashburn Place in Blackburn Victoria. The Property comprises two separate two-level offices/warehouses with 21,947m² of Net Lettable Area (NLA), and 231 at-grade car parks.

The primary land holding of 41,460m² (10.25 acre) with 20,259m² of NLA and 210 at-grade car parks was purchased for $31,500,000 and was acquired given its strong income, the size of its landholding and the strategic nature of the site which is closely located to the Blackburn Train Station, the Blackburn town centre and other important local infrastructure. Currently zoned Industrial 1, the Property has the potential to be rezoned to Commercial 2 which may avail the Fund further rental opportunities into the future.

The Property is producing income and we have leveraged its existing value whilst retaining all the strategic upside to come via the future repositioning of the site.

In March 2019, the Fund acquired an additional adjoining property in Ashburn Place for $3,200,000 given its strategic attributes which allowed secondary access/egress to the main site.

Since acquiring the site, the Fund has undertaken a re-leasing and repositioning strategy which has seen all major tenants extend their leases and we have also undertaken a significant upgrade to the existing vacant office space. In addition, the Fund has obtained a planning permit to construct an additional 2,200m² recreation facility on the site, which will increase cash distributions to investors and improve the capital value of the Fund.

The Fund now has a WALE of 6.7 years (on completion of the new facility) which sees the investment well positioned to navigate the existing market conditions.

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