Real Estate fund

The IIG Kensington Property Trust

Younghusband - A Beautiful Industrial Village For The Common Good.


Over the next five years, we are rejuvenating this beloved Kensington landmark.

We will restore its architectural beauty and honour its noble materials.

We are combining familiar sustainability features with environmental innovations.

The roof will capture rainfall and support a vast array of solar panels. We’ve developed plans for a unique water offsetting mechanism to help regenerate natural ecosystems.

Two anchor tenants have signed Agreements for Lease: The Commonwealth Government’s Department of Agriculture and architecture firm ClarkeHopkinsClarke.

With the support of our communities, tenants and neighbours, we’re restoring the heritage buildings, preparing modern workplaces, and creating inviting public spaces.

The IIG Kensington Property Trust’s Objective:
To grow, through staged rejuvenation of three Properties in Kensington, the Trust’s ability to generate returns from rental revenue, and deliver environmental and social benefits.


Stages 1-3 Target IRR

16-19%

[1]

Target Remaining Term

5-7 Years

[2]

Target Gearing

<60%

[3]

Equity Offer

$42.9m

[4]

Target Yield Post Stage 3 , Yr 1

~9% p.a.

[5]

The Opportunity

The underlying forces supporting the investment.

Younghusband is in Melbourne’s Inner Northwest Growth Corridor

The state and city government’s Arden Macaulay 30-year vision includes:

  • Jobs in the area more than doubling
  • Residents in the area more than tripling
  • Building new public transport, including the metro station at Arden central
  • Creating new parkland, recreation areas, habitat protection and improved walking and cycling links
  • Sustainable development, with a particular focus on the built environment.

Younghusband has exceptional transport connectivity

  • A five-minute walk to Kensington station
  • Walking distance to Upfield, Craigieburn, Werribee and Williamstown train lines
  • Well-served by cycling lanes, with extensive bike-parking on site
  • 20-minute drive to Melbourne Airport
  • Close to Citylink, Arden St and Dynan Road
  • 2.5 km from the Melbourne CBD

Victoria continues to lead the nation in both economic and population growth

Economic Growth Indicators

  • Melbourne’s GDP Growth Rate was 4% FY19, compared to 1.9% nationally.
  • Maribyrnong’s GDP Growth Rate was 4.3% FY19
  • Victoria added 98,000 employed people through the CY19, outstripping all other states.

(Sources: SGS Economics & Planning, ABS)

Key Property Information *

Total Site Area
~15,754 sqm
Target NLA for Stage 1
17,848 sqm
Target NLA all Stages [6]
50,000+ sqm
Stage 1 Leasing Signed AFLs
~40%
Melbourne Planning Scheme Zone
Commercial Zone 2
Stage 1 Development Application
Approved
Target on-completion valuation for Stage 1 [7]
$139.5 million

Stage 1 Tenancies (AFLs)

Department of Agriculture, Water & the Environment
4,388 sqm NLA
ClarkeHopkinsClarke Architects
2,700 sqm NLA

Stage 1 Tenancies (Under Negotiation) [8]

Clik Collective
1,070sqm
Bakery Hill Distillery
443sqm
Fox Gallery
178sqm

Impact Summary

Using the impact management project
framework & sdgs

By sharing our processes, data and stories, IIG will demonstrate how to apply best in class principles to rejuvenate a sustainable heritage building.

We will implement to world leading sustainable design principles, targeting water and carbon neutrality.

We are helping to build a culture of creativity, connection, belonging and inclusion at Younghusband, and engaging with the community to ensure our development incorporates their needs and identity.

Avoid Harm

Benefit people
and the planet

Contribute
to solutions

We expect Younghusband to mainly contribute to UN Sustainable Development Goal 11: Sustainable Cities & Communities.


Seed Assets

Rejuvenation Pending

Younghusband

Asset Type

Mixed Use Commercial Real Estate

Location

2-50 Elizabeth Street, Kensington, Victoria
1-7 Elizabeth Street, Kensington, Victoria
2-12 Barrett Street, Kensington, Victoria

Acquisition Cost

$30.25 million

Read More on this asset

[1] Based on a new investor participating in this capital raise and their pro-rata allocation in future offers. Assumes a notional sale of the Properties after the completion of Stage 3 in August 2025.

[2]  The Trust should be considered illiquid, but the Trustee may seek an exit option for unitholders once Stage 3 is complete (or earlier if deemed in the best interests of unitholders).

[3] Calculated by the total outstanding loan balance against the valuation of the Property at any given point in time.

[4] This amount has been partially underwritten. The final offer may be higher or lower, and is dependant on a range of variables.

[5] This is the estimated yield in the first twelve months, post the completion of stage 3 (estimated mid 2025), based on the $1.33 entry unit price in current offer and projected $1.50 unit price for subsequent capital raises required for Stages 2 and 3. The projected unit price would be based on an independent valuation taken at the time of issuance which would need to account for improvements to Stage 1 and also movements in surrounding market land values.

[6] Later planned stages include a new office tower with a potential height of eight stories, but are subject to planning approval and capital raises.

[7] Trustee’s estimate, based on assumptions including Stage 1 becoming fully leased with the targeted tenancy conditions (including but not limited to achieving target rent on the uncommitted space), all incentives being fully funded or paid, and a capitalisation rate of 5.0% on Stage 1.

[8] Subject to execution of Agreements for Lease with the prospective tenants. AFLs and prospective tenants in active negotiation equate to 49%. We are running a broad-based leasing campaign for a further 9.069 sqm (~51%), and are in various stages of discussion with prospective tenants we’re quite excited by.

[*] Property and Trust Information presented here are based on current assumptions, and may change. Further details will be set out in the relevant disclosure document for the offer. Please refer to the disclaimer below.

 

This page is not an offer to invest. It contains assumptions and forward looking statements that may prove inaccurate. When Trustee of the IIG Kensington Property Trust does make an offer to invest, it will issue an information memorandum, which will include the manager’s assumptions, risks and other important information. Investors must have read that information memorandum before making their final decision to invest. This page and the information contained in it is presented to you as a wholesale client (as defined in the Corporations Act). None of Impact Funds Management Pty Ltd ACN 138 179 914 AFSL 356648 (“Trustee”), Impact Investment Group Pty Ltd or their officers, employees or agents guarantees a return of capital or the performance of the IIG Kensington Property Trust (“Trust”). This page contains general information and does not take into account your objectives, financial situation or needs. Before making a decision to invest you should seek your own professional advice.