. On 12 February 2016 RFF announced the acquisition of an 8.96% stake in Perth Markets Limited (PML) for $5.275m
. PML is a consortium consisting of Brisbane Markets Ltd, Adelaide Markets Ltd, United Crates and RFF as well as wholesalers and retailers that access the market
. The Perth Markets were previously owned by the Western Australian Government, and have been privatised through a competitive tender process
. Investment case: – return exceeds AFFO and IRR hurdle
– potential for increased profitability via indexation, market review mechanisms and other recovery agreements within the leases
– opportunity for further development and investment
– further opportunities for investment in other city markets is likely
– investment connects RFF as a landlord with 2,600 growers and 600 buyers of agricultural produce, providing greater market information and insight
. Debt funded with banking approval received
. Brisbane Markets Ltd purchased the Brisbane Markets in 2002, under a similar process and since that time have significantly increased revenue and total assets
. Located in Canning Vale, approximately 20km south of the Perth CBD
. In FY15, 42% (by volume) and 55% (by value) of WA’s wholesale produce was traded through Perth Markets
. Consists of a 51 hectare plot of freehold land divided amongst core operations (15.1ha), noncore
operations (3.5 ha), and undeveloped land (13.6 ha)
. Total Net Lettable Area (NLA) is 85,972 m2
. 169 leases/licences to 114 tenants with evidence of strong rental demand
