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Key investment highlights

  • Strategically located, safety and convenience-focused fatigue management centres. The properties are geographically diverse and well situated along major regional transport routes, catering predominately for long-haulage fuel and convenience customers.
  • Designed with the future in mind. Brand new facilities with flexible designs to cater to changing transport and logistics market dynamics.
  • Strong tenant covenants and a long weighted average lease expiry. Properties are leased to prominent national fuel operators with an initial lease term of 15 years each, plus options, following practical completion of the properties.
  • Development and delivery risk mitigated. Each property has satisfactory town planning approval, an executed agreement for lease with a national fuel operator and a fixed cost for each asset.
  • Favourable benefits of a fund-through structure. The Fund has paid stamp duty on the land acquisition value, representing a significant saving compared with buying the properties on completion of development. Investors also accrue a coupon on equity invested throughout the development of the properties. The coupon is netted against the project development costs payable to the developer on the practical completion of the projects.
  • Tax efficient income distributions. Income distributions will commence in 2024 after practical completion of the projects. Due to building allowances and depreciation, there is also the potential for the income to be significantly tax-deferred.*
  • Pipeline for future acquisitions. The Fund will be able to develop similar future projects with the project manager and share in the potential development profits of the future projects.*

Deal metrics

Total purchase price $31.01 million projects
Net passing income $1.95 million
Loan to value ratio Max 55% on completion of developments
Rent reviews Fixed annual 3% increases. Ratcheted market review on the exercise of options.
Outgoings Fully recoverable
Fuel brands Liberty, Mobil (x2), Caltex
Occupancy on completion 100%
Weighted average lease expiry 15 years
Investment term 6 to 7 years
Development Pipeline Two properties per year for the first three years of the Fund term

Property and location summary

Mobil Heywood, Victoria
Mobil Colac West, Victoria
Liberty Jerilderie, New South Wales
Caltex West Wyalong, New South Wales

The offer

  • The offer is to raise c.$14.0 million in ordinary units and is only available to wholesale client investors as defined in the Corporations Act.
  • The minimum investment is $50,000.
  • The term of the Fund is 6-7 years unless the assets are sold earlier or more than 75% of unitholders by value agree to extend the term and KM Property Funds using reasonable endeavours to get members to exit and/ or allowing members to exit in whole or in part.

Fees and remuneration

  • Establishment fee of 2.0% (excl. GST) of gross asset value.
  • Management fee of up to 0.65% (excl. GST) p.a. of gross asset value.
  • Disposal fee of 1.50% (excl. GST) of the sale price of property sold by the Fund. This fee will be incurred to cover the costs of disposal, including agent’s commissions and marketing the property for sale.
  • Performance fee of 20% of the portion of outperformance of the Fund over a benchmark IRR of 8.0% p.a.^ net of all fees and costs (excluding performance fee) for the relevant calculation period.
  • The Fund will incur ongoing administration costs including accounting fees, audit costs, registry fees, custodial fees, tax and legal advice fees, investor reporting costs, bank charges and postage. These costs are estimated to be 0.35% per annum of the gross asset value. This amount is an estimate only and actual costs may be more or less than this amount.
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General Documents

Brochure | February 2023

The information contained in this document is dated February 2023 and is subject to satisfactory completion of property, legal, tax and financial due diligence. No offer to acquire units in the Fund is made under this document. Investors should refer to the Information Memorandum in respect of the Fund available from KM Property Funds. It has been produced without taking into account any person’s objectives, financial situation or needs. Before acting on this information, investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs. This information may contain forward looking statements, forecasts, estimates and projections. KM Property Funds does not represent or warrant that any forward statements will be achieved or prove to be correct.

*Tax-efficient income and capital growth potential is subject to financial analysis and disclosure in the Fund’s Information Memorandum when issued.

^Subject to financial analysis and disclosure in the Fund’s Information Memorandum when issued.

Get in touch to discuss options today
1300 132 099