Australian property investment group Quanta Investment Funds has strengthened its growing portfolio with the acquisition of a prime industrial asset in Paget, Mackay for $16.7 million. 

This strategic purchase of 91 Connors Road, Paget Mackay is consistent with the group’s commitment to delivering compelling investment opportunities in high growth markets. 

The acquisition was finalised on 11 September and includes a fully occupied modern industrial facility leased to United Group Limited (UGL), a subsidiary of Germany's largest construction company, HOCHTIEF, which has a market capitalisation of more than €8.35 billion. 

The 8,881 square metre building located in the tightly held and undersupplied Paget market, occupies just 29% of the 3.1 Ha site across two large warehouses and offers highly secure income through a 15-year triple net lease. 

The outgoing vendor has committed $1.5 million towards capital works upgrades, ensuring the property is well-positioned for future growth and de-risking its capital expenditure profile. 

Quanta Investment Funds CEO, Stacey Jones, said the acquisition reflects the group's commitment to selecting strategic investment offerings in sectors that provide the best value for investors. 

“Securing this property in a market where transactions remain subdued is a significant achievement. We have stayed true to our strategy of seizing opportunities when they present themselves,” Jones said. 

“This investment offers built-in capital and income growth potential, with the current passing rent approximately 20% below market rates. Additionally, the property provides significant development upside due to the low site cover and tenant demand for additional lettable area. 

“We’ve been very pleased with the support from our investors. Over the past few years, industrial assets have been the sector of choice, and we’re thrilled to offer this outstanding opportunity, which combines a strong return profile with tremendous value-add potential.” 

The vendors of the asset were Brisbane based Arcana Capital, chaired by former Premier of Queensland Campbell Newman. Arcana acquired the asset in 2016 as one of their earliest transactions. 

Mr Newman said “this asset has delivered great returns to our investors over the years but in line with the original strategy it is time to sell. We believe that Quanta has secured a fantastic property that will continue to perform for their clients and offers clear capital growth moving forward.”

Jones attributes Quanta's ongoing success to the expertise of the team and the group’s commitment to adapting to changing investor needs. 

"Ultimately, our goal is to provide our investors with more choices across the risk-return spectrum and in varying markets and sectors," Jones said. 

"The acquisition in Paget is a perfect example of how we’re continuing to bring our investors opportunities that suit their needs."