233 Shellharbour Road
The property is located in New South Wales, in the established industrial area of Port Kembla, eight kilometres south of Wollongong CBD. The property has access to the Port Kembla port, major arterial roads and freeway.
The site is four hectares, with a net lettable area (NLA) of 7,176 sqm, offering office, warehouse, hardstand and car park facilities.
The property is tenanted to Wallenius Wilhelmsen Logistics Australia Pty Ltd (WW), a wholly owned subsidiary of Wallenius Wilhelmsen Logistics, located in Oslo, Norway. WW’s operation is the transport of agricultural and construction vehicles and machinery from their places of manufacture into Australia.
This quality facility was acquired from a deceased estate, with the tenant WW nearing the end of 10-year lease term, at below market rentals, with one 10-year option and two 5-year options. Substantial capital expenditure and improvements made by the Lessee suggesting that there was a high likelihood that the Lessee would exercise their 10-year option.
The investment is structured on the basis that no distributions (except such amount to fund investors’ tax commitments) will be paid to investors until a new lease has been concluded with WW or a new Lessee. As WW have not exercised their option and remain on holdover, the premises are being offered for lease. Throughout the investment, surplus cash has been used to retire debt.