Younghusband Woolstores, Kensington, Melbourne
Asset type: Commercial property
Three neighbouring properties in the inner northwest of Melbourne, and within an area earmarked by the City of Melbourne for extensive urban renewal. The Properties cover more than 1.5 hectares and with approximately 30,000m2 of lettable area. The centrepiece is the historic, character-imbued Younghusband Woolstore, a red-brick warehouse style building with a sawtooth roof and abundant natural light. The second property is a one-story red brick building, and the third is an undeveloped lot, currently used for ad-hoc car parking. The Trust has acquired the Properties for $30.25 million. The Trustee’s investment strategy is to gradually increase the rental income from existing and new tenants, refurbish and partially redevelop the Properties, improving their fabric and services to increase their value and sustainability. The Trustee intends to then hold the Properties for a term of 10 years.
Return: Target IRR of 12-18%pa over an term of 10 or more years.
Environmental intention: Create a site that is water and energy neutral across the three Properties.
Social intention: IIG's long term vision for the site is to produce a community-focussed commercial hub, encompassing art, education, technology, hospitality, artisan manufacturing and innovation