Understanding Commercial Mortgages for a Logistics and Transport Depot
Buying the depot your logistics or transport business runs from is a defining step, and it puts the yard, hardstand and access under your control for the long term. At Ardent Capital Group we speak with operators about this kind of commercial property purchase often, so this guide covers how a lender reads a depot and what shapes the number.
Ardent Capital Group is a specialist in commercial mortgages for logistics and transport depot operators across Australia. Our team helps owners move from tenant to owner, with clear lending advice on structure and strategy.
- Finance from $100,000 to $10,000,000+, arranged for owner-occupiers and investors.
- Over $500,000,000 in funding facilitated across a decade for more than 1,000 borrowers.
- Expertise across complex depot assets, including zoning, environmental, hardstand, fuel, and power.
- National coverage across Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Canberra, Hobart and surrounding regional towns.
Why buy rather than lease your logistics and transport depot
A compliant depot is capital intensive. You build or pay for features the landlord then owns: heavy-duty concrete or asphalt hardstand, wide crossovers, weighbridge, fuel storage and bowsers, wash bay and interceptors, MHE charging, three-phase power upgrades, security fencing and gatehouse, queueing lanes, and workshop pits. The yard and warehouse configuration is part of your operating model and driver safety.
Location ties to customer contracts and linehaul lanes. Proximity to ports, intermodals, and arterials reduces unproductive kilometres and keeps service windows. Recruitment benefits from a stable, well-located base with good access and amenities.
Freight demand across e-commerce, FMCG, construction materials, and cold chain has proven resilient. Mortgage repayments convert rent into equity in a core business asset, with control over improvements and expansion.
Main drivers:
- Control of site specification, with the freedom to extend hardstand, add canopies, dock levellers, racking, and solar without landlord friction.
- Cost certainty over the long term, protecting margins from rent escalations and make-good disputes.
- Better alignment of depot investment with operational risk, including compliance for PBS and dangerous goods where applicable.
- Ability to plan multi-year fleet, warehouse, and technology upgrades around a stable site.
When renting still makes sense:
- A short contract horizon or a likely relocation tied to a new account win, loss, or lane change.
- Capital that delivers a higher return in fleet, telematics, cold chain equipment, or people.
- A site with future planning risk, limited expansion potential, or unresolved environmental history. The decision sits with you.
The mechanics of a logistics and transport depot mortgage
- Deposit and LVR. An industrial building, the warehouse and shed, is standard commercial security and gears to around 80 per cent for owner-occupiers, so a deposit near 20 per cent plus costs. Where a depot is predominantly open yard and hardstand, lenders read it closer to 65 per cent, since vacant industrial land carries a lower band. The more shed and the less bare yard, the higher you borrow.
- Loan term and structure. Banks commonly publish terms of 10 to 15 years; non-bank lenders run 25 to 30 years. Structures include principal and interest for steady amortisation, or interest only for periods where cash flow prioritises fleet upgrades or growth.
- Security and serviceability. The property is the primary security. Lenders review trading history, margins, debtor days, existing fleet finance, and the ability to service under realistic assumptions.
- Owner-occupier treatment. Lenders often price and assess owner-occupied industrial more favourably than pure investment, reflecting lower vacancy risk and stronger engagement with the site. The major banks publish no owner-occupier commercial LVR at all, so knowing which lender to approach is part of the work.
Structuring the finance
Many logistics and transport depot operators hold the freehold in a separate entity, often a company or trust, that leases the premises back to the trading business at a commercial rent. A lender then reads that inter-entity lease as the serviceability line and takes the property as security, while the arrangement keeps operational risk apart from the property asset. Ardent Capital Group arranges the finance around whichever entity holds the freehold, and your accountant confirms which structure suits your tax and ownership position.
Buying through an SMSF. A commercial depot generally qualifies as business real property, so a self-managed super fund can hold the freehold and lease it back to your trading entity at market rent. The purchase runs under a limited recourse borrowing arrangement, with a bare trust holding legal title until the loan is repaid, the fund holds the depot as the one asset under that loan, and the deposit has to come from the fund's own balance rather than the trading entity. Ardent Capital Group arranges the borrowing for that structure; your SMSF's accountant and adviser confirm the fund satisfies the contribution, liquidity and ownership rules before the purchase proceeds.
How lenders size up the deal
- Business financials and stability. Three years of financials where available, BAS, year-to-date performance, major contracts, margins by lane or division, debtor concentration, and fleet finance commitments.
- Serviceability metrics. Cash flow coverage of proposed repayments, interest cover, and sensitivity to fuel, tolls, and wages movements.
- The property and valuation. Zoning fit for heavy vehicles, access to arterials, B-double compliance, crossovers and turning circles, pavement and hardstand specification, warehouse clearance, ESFR or hydrant compliance, weighbridge certification, power capacity, flood and planning overlays, and environmental risk.
- Deposit and equity position. Source of funds, capacity to leverage your equity in other property, and how improvements affect value uplift.
- Lease and occupancy. Owner-occupier intent, any third-party tenants, WALE, and rent relative to market.
A specialist broker who lives in industrial and depot assets can pre-empt valuation questions on hardstand, environmental concerns, and access design, which smooths the path to approval.
A scenario worth considering
This is an illustrative scenario that shows the kind of situation we can assist with, and how the thinking might run.
- Profile: a NSW linehaul and contract logistics operator, around $18,000,000 revenue, renting a 1.2-hectare depot with a 6,000 sqm warehouse in Wetherill Park at $450,000 per annum.
- Target asset: a 1.5-hectare site nearby with heavier pavement, dual crossovers, canopy, and fuel infrastructure, listed at $9,200,000.
- Options we would map:
- Owner-occupier purchase held in a property trust and leased back to the trading entity at market rent: deposit in the 20 to 30 per cent range, interest only for year one during ramp-up, then principal and interest.
- Partial tenant income from a sub-leased hardstand corner, useful for serviceability where the lease terms and access are clean.
- Using existing equity in a warehouse unit and the director's home to reduce the cash deposit, an approach to leverage your equity while keeping buffer cash for fleet.
- An SMSF purchase of a smaller strata depot instead, held as the fund's single asset and weighed against liquidity, the fund's own deposit, and the borrowing rules.
How we would approach it: for an owner-occupier with strong financials, an industrial building of this kind would sit near the 80 per cent band, with a yard-heavy site read lower, subject to valuation, environmental, and lease documentation. We would map the ranges, structures and repayments, then talk them through with the operator so the decision is theirs. The figures above are illustrative, not confirmed outcomes.
Related finance for a logistics and transport depot
- Asset finance for trucks, trailers and MHE. Prime movers, B-doubles, refrigerated vans, side-loaders, forklifts, reach stackers, yard tugs and IT chargers aligned to your replacement cycle, arranged as truck and trailer equipment finance.
- Fit-out and refurbishment finance. Hardstand upgrades, canopies, warehouse racking, dock levellers, wash bays, fuel systems, security, and power.
- Working capital. Cashflow finance for a transport depot to bridge fuel, wages, parts, and toll cycles where debtor terms extend beyond 30 days.
- Business overdraft. Flexible limit linked to receivables for seasonal peaks and large shipper payment terms.
- Refinancing and debt consolidation. Restructure legacy chattel mortgages and consolidate repayments to improve cash flow predictability.
- Construction and renovation. Fund yard extensions, warehouse builds, solar and battery, and compliance upgrades tied to new contracts.
- Business or premises acquisition finance. Acquire a competitor's depot, expand to a second yard, or buy strata industrial units for satellite operations.
These facilities interact. Owning the premises can free equity for fleet and technology, and a refinance can consolidate multiple facilities into a clearer structure.
Specialist finance for logistics and transport depot premises
Ardent Capital Group arranges and structures commercial mortgages for logistics and transport depot owners, across purchase, refinance and equity release. We build the finance around how you intend to hold and occupy the site, with clear scenario work and lender selection matched to the asset and your cash flow.
We work with operators in Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Canberra, and surrounding metro and regional areas. Over a decade we have helped facilitate more than $500,000,000 in funding for over 1,000 borrowers.
This is the kind of purchase where the structure and the strategy matter as much as the rate. We give owners clear advice on both, so the finance supports the wealth you are building and the years ahead, not just this settlement. If you are weighing a depot purchase, whether that is a depot property loan, a refinance or releasing equity, we would be glad to talk it through.
Frequently asked questions
What deposit do I need to buy a logistics depot? An industrial building gears to around 80 per cent for an owner-occupier, so a deposit near 20 per cent plus costs. Where the site is mostly open yard and hardstand, lenders read it closer to 65 per cent, so a yard-heavy depot needs a larger deposit.
Will lenders value my hardstand, fuel system, and weighbridge? Yes, but valuers apply evidence-based rates. Heavy-duty hardstand, canopies, and compliant fuel and wash infrastructure are considered, with documentation and certifications improving assessability.
Can my SMSF buy the depot and lease it to my business? Commercial depots generally qualify as business real property, so an SMSF can purchase and lease back at market rent. Borrowing limits, liquidity, and contribution caps need to be factored into the decision, and your SMSF adviser confirms the fund side.
How do lenders view partial tenancy on my site? If you sub-lease a yard corner or spare warehouse bay, lenders will assess lease terms, access separation, and WALE. Clean documentation and market rent strengthen serviceability.
Do regional depots near highways qualify for the same LVRs? Strong regional industrial with highway access, B-double compliance, and diversified demand can meet similar LVRs, subject to valuation evidence and depth of buyer demand.
Can I set the loan interest only while I upgrade fleet or the yard? Many lenders allow interest only for a period, subject to serviceability and a clear plan to move to principal and interest once upgrades or contract transitions are complete.
What environmental issues do lenders focus on for depots? Fuel storage, wash bays, interceptors, historical use, and any contamination risks are reviewed. Expect requirements for current certifications and, where needed, environmental reports.
Written by
Nick Chong
Managing Director, M.AppFin, Dip. Mortgage Mgmt
Nick holds a Bachelor of Agricultural Economics, a Master of Applied Finance and an Advanced Diploma in Financial Planning. He founded Ardent Capital in 2016 after more than a decade in financial planning and mortgage broking. For the past ten years he has led a team of finance specialists, mortgage advisers, brokers and credit analysts, all working to secure optimal outcomes for clients and always acting in their best interests. The team brings both a qualitative and a quantitative approach to every deal.
