First Choice Liquor and Hampstead Hotel
143 North East Road, Collinswood, South Australia
The first asset purchased by the Fund comprises a recently refurbished, standalone First Choice Liquor store and full-service bar and Bistro (Hampstead Hotel). Tenanted by Queensland Venue Co. (a joint venture with Coles and Australian Venue Co.), this asset was strategically selected to offer a blue-chip income stream to establish the Fund, with potential for capital growth through capital and leasing works.
During due diligence, we identified an opportunity to work with the tenant on a capital works upgrade to the Hampstead Hotel, which resulted in the tenant exercising a 10-year lease term option early with a 24% increase in rent.
Sector
Retail & Hospitality
Location
Collinswood, 4.5km from Adelaide CBD
Tenant
Queensland Venue Co. (joint venture between Coles Group & Australian Venue Co.)
INVESTMENT HIGHLIGHTS
- The property is fully occupied by Queensland Venue Co., a joint venture between Coles Group and Australian Venue Co. – Australia’s second largest operator of pubs, bars and venues.
- The asset was acquired with a six-year WALE, which was subsequently extended for a further ten-year term as part of our value-add strategy.
- We are in the process of undertaking a capital works upgrade on the Hampstead Hotel to drive further uplift in income and value.
- The lease benefits from a rare, uncapped CPI rent review mechanism to capitalise on strong short-term forecast inflation.
- The site also includes three vacant retail shops totalling 235 sqm. We have not attributed any value to these shops, providing potential for additional income and further upside in value once leased.
Site and Surrounds
