Moelis fund pays $21m for Healesville centre
The fund will target overseas investors who qualify for the Significant Investor visa, which fast-tracks Australian residency for buyers of property worth more than $5 million.
The first deal was for the Healesville Walk Shopping Centre, for which the manager of the fund, Moelis Australia Asset Management, paid $21.2 million from the joint owners, Australand and Bank of Scotland.
The managing director of Moelis Australia Asset Management, Andrew Martin, said the visa fund would manage real estate investments for holders of the Australian Significant Investor Visa.
The first investor into the visa fund was sponsored by the NSW government.
"The fund's investors have a strong appetite for Australian commercial property investments with strong stable cashflows from major tenants," Mr Martin said.
"Healesville Walk represents a very good fit for this fund given the stability of the asset, underwritten by the consistent strong performance of the anchor tenant, a Coles supermarket."
The Moelis Australia Asset Management's Visa Fund manager Enda Stankard said the intention for the fund was to invest directly in Australian commercial real estate assets and also from joint venture investments.
"The $21.2 million sale price reflects an initial yield of 7.9 per cent, with the centre fully leased at the date of sale," Mr Stankard said.
Healesville Walk is about 52 kilometres from Melbourne in the Yarra Valley. It is a 4971-square-metre neighbourhood shopping centre, anchored by Coles, and includes 12 specialty shops and is the major shopping centre in the Yarra Valley.
RetPro and Hall & Wilcox acted on behalf of the purchaser. CBRE and Minters acted on behalf of the vendor.
Frequently Asked Questions about this Article…
The fund acquired the Healesville Walk shopping centre in the Yarra Valley for $21.2 million from joint owners Australand and the Bank of Scotland.
The Moelis Australia Property Visa Fund is a $300 million-plus fund managed by Moelis Australia Asset Management that targets overseas investors who qualify for the Australian Significant Investor Visa, managing real estate investments on their behalf.
The fund is aimed at holders of the Significant Investor Visa — a program that fast-tracks residency for buyers of property worth more than $5 million — by providing a vehicle to invest directly in Australian commercial real estate that meets those investors’ needs.
Healesville Walk is a 4,971-square-metre neighbourhood shopping centre about 52 kilometres from Melbourne in the Yarra Valley, anchored by a Coles supermarket, with 12 specialty shops and serving as the major shopping centre in the area.
The 7.9% initial yield reported reflects the centre’s net income relative to the $21.2 million purchase price at the time of sale; because the centre was fully leased and anchored by Coles, Moelis described the cashflows as stable, which supports that yield level.
According to the fund’s manager, investments will be made both through direct acquisitions of Australian commercial real estate and via joint-venture investments with local partners.
RetPro and law firm Hall & Wilcox acted on behalf of the purchaser (the Moelis fund), while CBRE and Minters acted for the vendor, Australand and the Bank of Scotland. The first investor into the fund was sponsored by the NSW government.
No — the fund is designed specifically for overseas investors who qualify for the Significant Investor Visa. Everyday Australian retail investors would need to look at other commercial property vehicles or funds, as this Visa-focused fund targets a different investor group.
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