Newmark REIT Management Limited as the responsible entity of Newmark Property REIT has announced the exchange of a contract for the acquisition of a large format retail (LFR) property in metropolitan Brisbane, Queensland.
The deal negotiated off-market by CBRE’s Joe Tynan and Michael Hedger for a 100% freehold interest in a 2.8 Ha LFR property at 1-17 Compton Rd in Underwood, Queensland sold for a total purchase price of $57 million.
The property is a purpose built LFR site, located approximately 20km South-East of the Brisbane CBD in a prominent location at the intersection of Kingston and Compton Roads (a high traffic volume intersection) and sits adjacent to Bunnings Underwood – a recently built and strong performing Bunnings store on Compton Road.
Chris Langford, Newmark Capital Joint Managing Director, said: “The Property is a high-quality property that is located on a significant land holding on the corner of two arterial roads in a sizeable catchment area and underpinned by leading national retailers. We believe that this combination of underlying real estate and tenancy mix provides for a high-quality long-term investment.”
The property comprises four buildings with a combined lettable area of 11,115 m2, featuring a strong tenant mix that includes quality national retailers such as Officeworks, Supercheap Auto and Sydney Tools. The tenancy mix is highly defensive with more than 80% of the lettable area leased to medical uses and leading national retailers, providing diversification benefits for the portfolio.
With occupancy of 99%, a Weighted Average Lease Expiry (WALE) of 6.3 years and average rental increases of 3.1% p.a. the property provides additional defensive and growing income for the portfolio.
Ed Cruickshank, NPR Fund Manager, said: “NPR’s objective is to provide investors with exposure to high-quality real estate targeting consistent and growing distributions and the acquisition of the property provides just this. This high-profiled LFR property is located in a thriving local economy and anchored by high quality, strong performing tenants on long term leases with attractive built-in growth. The acquisition is complementary to NPR’s strategy and existing portfolio and provides the exposure and diversification of geography and defensive and growing income profile that NPR is seeking to provide its investors.”.
Authorised for release by the Board
The acquisition of the Property will increase Newmark Property REIT’s portfolio to nine properties enhancing the portfolio’s geographic diversity and increasing its exposure to Queensland from 13% to 21%.
Settlement is expected to occur in early September 2022.
Article source: www.shoppingcentrenews.com.au
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