April 16, 2026 Industrial & Logistics

A Commercial Mortgage Guide for Warehouse and Distribution Centre Owners

Buying the warehouse or distribution centre your business already runs from is a considered step toward owning the site your operation is built around. At Ardent Capital Group we speak with logistics, 3PL and distribution owners about this kind of commercial property purchase, so this guide sets out how a lender reads the asset and what shapes the number.

Ardent Capital Group is a specialist in commercial mortgages for warehouse and distribution centre operators across Australia. Our team can help you move from tenant to owner, and give you clear lending advice on structure and strategy.

We arrange finance from $100,000 to $10,000,000+, tailored to industrial property and working capital needs.
We have helped facilitate over $500,000,000 in funding over a decade for more than 1,000 borrowers.
We service Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, Hobart and surrounding regional towns.
We structure finance for owner-occupiers and investors, including trusts, companies and SMSFs where suitable.

This is the kind of purchase a warehouse property loan is built for, and the area our industrial finance team focuses on.

What ownership gives a warehouse and distribution centre operator

Industrial operations invest heavily in site-specific improvements. Pallet racking, mezzanines, conveyor systems, dock levellers, cool rooms, ESFR sprinklers, dedicated power and data, yard hardstand and access control are expensive to install and expensive to move. Location is strategic, tied to port, airport and intermodal access, key arterials, heavy-vehicle routes, and your labour catchment. Repayments convert rental outgoings into an owned asset on your balance sheet, and long-term holding can lift resilience through cycles.

The main drivers:

Lower long-run occupancy risk where rents trend upward and industrial vacancy remains tight in key precincts.
Retain the value of your fit-out and specialised build, instead of leaving improvements behind at lease end.
Improve control over layout and future upgrades, including automation and cold-chain investments.
Build equity over time, creating options to leverage your equity for equipment, fleet or expansion.

Buying may not suit every operator. If your lease horizon is short and a relocation is already planned, if the operation is likely to outgrow the site soon, or if capital is better deployed in inventory, automation or acquisitions, staying on a lease can be the right call for now. The decision sits with you.

How a warehouse and distribution centre purchase is funded

Deposit and LVR. A warehouse or distribution centre is standard commercial security, so it gears up to 80 per cent of value, meaning a deposit from around 20 per cent. Some scenarios reach 100 per cent using additional security, for example cross-collateralising other property you own, and our broker team can explain the mechanics in plain terms. Vacant industrial land and large hardstand yards gear lower, around 65 per cent, because there is less shed and more open ground.
Loan term and structure. Non-bank lenders commonly run 25 to 30 year terms, while the banks often publish 10 to 15 years. Structures include principal and interest for steady amortisation, or interest only for periods where cash flow flexibility is a priority, for example during commissioning of new automation.
Security and serviceability. The property is the primary security. Lenders assess business financials, tax returns, BAS, aged receivables, margins per pallet or per order, seasonality, and debt obligations. Independent valuation confirms property value and, for highly specialised improvements, marketability.
Owner-occupier treatment. Lenders generally view owner-occupied purchases more favourably than investment lending, because vacancy risk is lower and business performance and property upkeep pull in the same direction. That is assessed on pricing, LVR and covenants case by case.

Common holding structures

Most warehouse and distribution centre operators hold the freehold in a separate entity rather than in their own name, and a lender arranges the finance around the ownership arrangement already in place. Many hold the property in a trust and let the trading business pay market rent, and a lender then reads that inter-entity rent as the serviceability line. The chosen structure shapes who owns the shed, who owns the fit-out, and how the security and the guarantees behind the loan are assessed.

Holding and operating company split. A property-holding company owns the building and leases it to the trading company at market rent. The lender takes the warehouse as security and usually a guarantee from the operating business and its directors, because the rent that services the loan comes from the freight and fulfilment running through the site.
Family or unit trust ownership. A trust holds the asset, with beneficiaries or unit holders sharing the property. Where two or three logistics partners own the distribution centre in agreed proportions, a unit trust sets that split cleanly, and the lender assesses each guarantor standing behind it.
Multiple trusts. Larger operators sometimes separate a high-value automated site from an older facility across different trusts, so borrowing against one asset does not encumber the other. Each trust deed is read by the lender for its borrowing power and the identity of the appointor.
SMSF with a bare trust. A warehouse commonly qualifies as business real property, so a self-managed super fund can buy it under a limited recourse borrowing arrangement and lease it back to your trading business at market rent. A bare, or custodian, trust holds legal title until the loan is repaid, and recourse is limited to that single property rather than the fund's other assets.

Ardent structures the finance around your set-up. Your accountant confirms the tax, super and ownership detail before anything is locked in.

What a lender looks at

Business financials, including profitability, EBITDA trends, cash conversion cycle and seasonality across peaks.
Serviceability, tested against proposed interest rates, amortisation and any existing fleet or equipment finance.
The property and its valuation, including clear height, loading, yard, power, sprinkler rating and zoning.
Deposit and equity position, including cash, director funds, and available equity in other property to leverage your equity.
Lease and occupancy, including internal lease terms if held in a separate entity, and any subleasing of excess space.

A specialist broker with industrial experience helps frame the numbers and the asset so they make sense to credit teams used to reviewing logistics and 3PL operations.

An illustrative scenario

This is an illustrative scenario that shows the kind of situation we can assist with, and how the thinking would run.

The situation: A 3PL operator in Melbourne's west runs a 4,500 sqm leased facility with 14 months left on the lease, investing in additional pallet racking and a small mezzanine. Turnover is growing on FMCG contracts with seasonal spikes.
The objective: Control occupancy costs, retain fit-out value and secure a location near the Western Ring Road to meet delivery SLAs.
Option 1: Buy an existing 5,000 sqm warehouse at $7,500,000 through a property-holding trust and lease it to the trading entity at market rent. Indicative LVR up to 80 per cent for an owner-occupier, with the deposit made up of cash plus equity in the director's residential property to leverage your equity. Fit-out and racking funded with asset finance.
Option 2: Land-and-build in Truganina with construction funding, interest only during the build, converting to principal and interest at completion. This allows tailored dock positions and ESFR upgrades, with a longer timeline and staged drawdowns.
Option 3: An SMSF purchase of a smaller site with lower gearing, leased back at market rent, suiting a conservative gearing profile and a longer investment horizon.
How we would approach it: Ardent would map the deposit sources, entity structures, internal lease settings and capex funding, then set out the rate and covenant ranges so the owner would choose the path that matched their risk appetite and growth plan. The figures above are illustrative, not confirmed outcomes.

Finance options for warehouse and distribution centre businesses

Asset finance: fund forklifts, reach trucks, pallet wrappers, conveyors, WMS hardware, trucks and trailers tied to your freight profile. See our warehouse equipment finance options.
Fit-out and refurbishment finance: spread the upfront cost of pallet racking, mezzanines, dock levellers, cool rooms and ESFR upgrades.
Working capital loans: arrange working capital for a warehouse to support inventory builds ahead of peak periods and maintain delivery performance through seasonality.
Business overdraft: cover timing gaps between debtor receipts and carrier payments without disrupting operations.
Refinancing and debt consolidation: reset pricing, simplify multiple facilities and release capacity for growth projects.
Construction and renovation: fund extensions, extra docks, hardstand upgrades and power capacity increases for automation, using construction finance that draws down in stages.
Business or premises acquisition finance: buy a competitor's site or purchase the building you currently occupy from your landlord.

These facilities often interact. Owning the premises can free equity for equipment upgrades, and a refinance can consolidate short-term facilities into a cleaner structure.

How Ardent helps warehouse and distribution centre buyers

Ardent Capital Group focuses on commercial mortgages for industrial, logistics, warehousing and distribution assets. We arrange and structure the finance around how you intend to hold and occupy the property, aligning the entity, lease and loan terms with your operating model. Nick's background in financial planning means the team can map an optimal structure with you first, then work alongside your accountant to confirm it.

We service Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Canberra and surrounding metro and regional areas. If you want clear options and a specialist view, talk to us. Our job is to set you up for optimal financial outcomes.

Questions worth asking

What deposit do I need for a warehouse purchase as an owner-occupier? A warehouse gears up to 80 per cent of value, so plan for a deposit from around 20 per cent, with the exact figure set by the asset and your position. Equity in other property can help you leverage your equity.

Will lenders fund specialised fit-outs like cold storage and automation? Yes, though valuation and marketability are assessed closely. Building works may be included within a commercial mortgage, with equipment funded via asset finance on parallel terms.

How do lenders view 3PL revenue seasonality? Lenders test serviceability with buffers and focus on contract tenure, customer concentration and gross margin stability through peaks. Strong debtor performance and clear forecasts help.

Should I buy the warehouse in a trust or company and lease it to my trading business? Many owners do. A separate entity holds the asset, then leases to the trading entity at commercial rent. The structure supports serviceability and separates operating risk from the property.

Can my SMSF buy my warehouse and lease it back to my business? Often yes, where the property qualifies as business real property and the lease is at market rate. Expect tighter gearing and documentation aligned to superannuation rules, with your accountant confirming the detail.

Owner-occupier versus investment loan, what changes? Owner-occupier facilities are assessed on the business behind them, so LVR, pricing and terms can differ from an investment loan, which is assessed on lease income strength, WALE and tenant profile.

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.