16 December 2024

KM Property Funds, on behalf of its investors, is pleased to announce the successful sale of a mixed- use investment property Thebarton Square Property Fund. 

The property was acquired in 2020 for $17.25 million and recently sold for $22.0 million to a private investor. The sale was completed off-market by Ryan Mills and Max Frohlich of Knight Frank in South Australia. 

The single asset fund delivered investors an average annual distribution of c. 6.2% and an IRR of c. 12% p.a. (pre-tax and net of all costs), over a 5-year period – a 27% premium to the original target returns at the commencement of the investment. 

The property consists of a range of heritage style brick buildings supplying office and warehouse accommodation of 10,714 sq. m leased to quality tenants such as Coca-Cola and Adelaide’s state-of- the-art high-performance sports gym, Gameready. The land consists of multiple titles providing an island site with an area of 14,510 sq. m. 

Chief Investment Officer, Mario Papaleo, said: “We’re proud of the results achieved for our investors in a challenging market to navigate, particularly with a significant office component. The property is underpinned by a great location with high underlying land value given the strong residential and mixed- use development growth potential in the precinct. This ultimately was the catalyst for strong capital growth for investors coupled with the regular distributions during the hold period.”