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Viking Properties Pty Ltd is the trustee for Viking Properties Trust. Viking Properties Trust is a vehicle that’s used to raise money from the public or from the institutional market to support our business in buying properties.
Currently there are two properties in the trust. There’s a property down in the Gold Coast [Gold Coast City Marina shed facilities occupied by Blackline Shipping], and there’s also the property at Hemmant, Brisbane, [Brisbane Marine Industry Park] and the total combined value of those two properties is $12 million.
That’s a start for the actual business.
In the future, we want to take it to a couple of hundred million over the next couple of years.
So what we’re going to do is grow it from $50 million in the first year and then we’re looking at $150 million the following year.
To get deal flow is extremely tight and everyone knows that in the market currently, because industrial property has become very popular in the last four to five years.
Where we’ve got the advantage is that we’ve got deal flow through our internal people who have got access to properties they’ve have been looking at for some time and also leveraging off the current properties that we’ve got.
Yields are under pressure with industrial properties, but the advantage we have is we’re unique. We’re not just your general industrial properties, we’re actually by water, and that’s what the key thing is. And we actually have businesses that operate on those sites, so that’s another advantage for us.
We find this as an exciting part for shareholders because it’s the way of growing the property businesses today.
The real value is it will give Viking the opportunity to acquire properties a lot more quickly and build its asset base, and that’s where the value is going to come back to the shareholder.
The future looks bright. The only thing that we see is that setting up a funds management business takes a long time and there’s a long process in getting that up and going.
But that’s not the real issue - the issue behind it is making sure that you’ve got the supply of properties coming into the funds management business that you need.
Currently there are two properties in the trust. There’s a property down in the Gold Coast [Gold Coast City Marina shed facilities occupied by Blackline Shipping], and there’s also the property at Hemmant, Brisbane, [Brisbane Marine Industry Park] and the total combined value of those two properties is $12 million.
That’s a start for the actual business.
In the future, we want to take it to a couple of hundred million over the next couple of years.
So what we’re going to do is grow it from $50 million in the first year and then we’re looking at $150 million the following year.
To get deal flow is extremely tight and everyone knows that in the market currently, because industrial property has become very popular in the last four to five years.
Where we’ve got the advantage is that we’ve got deal flow through our internal people who have got access to properties they’ve have been looking at for some time and also leveraging off the current properties that we’ve got.
Yields are under pressure with industrial properties, but the advantage we have is we’re unique. We’re not just your general industrial properties, we’re actually by water, and that’s what the key thing is. And we actually have businesses that operate on those sites, so that’s another advantage for us.
We find this as an exciting part for shareholders because it’s the way of growing the property businesses today.
The real value is it will give Viking the opportunity to acquire properties a lot more quickly and build its asset base, and that’s where the value is going to come back to the shareholder.
The future looks bright. The only thing that we see is that setting up a funds management business takes a long time and there’s a long process in getting that up and going.
But that’s not the real issue - the issue behind it is making sure that you’ve got the supply of properties coming into the funds management business that you need.
