Multi-tenanted convenience retail centre

58 Oldfield Road, Sinnamon Park, Queensland

The third asset acquired by the Fund is an established neighbourhood retail centre with exposure to a diverse mix of convenience and daily needs retail tenants.

Occupying a prominent corner site, this asset was selected due to its prime inner-Brisbane location, strong rental growth prospects and potential development opportunities.

With several of the tenancies expiring in the short term, there is significant potential to actively lease the property to drive capital and rental growth. The Fund is underway to lease the current vacancy to a medical tenant or complimentary operator with the aim of enhancing the asset’s tenancy mix and driving value through extension of the Centre’s WALE. Subject to the successful re-leasing of the asset, the target is to re-finance the property at an improved valuation to facilitate payment of a Special Distribution to investors.

With a low site coverage of 20%, we also see potential to enhance the site’s value through possible expansion of the asset, which we intend to explore as part of our value-add strategy.

 

Sector

Neighbourhood Retail



Location

Sinnamon Park, Queensland



Tenant

Multi-tenanted with exposure to convenience and daily needs retail


 

INVESTMENT HIGHLIGHTS

  • The Centre offers immediate value-add potential through the re-leasing of a vacant medical tenancy to a medical or complementary user.
  • Subject to the successful re-leasing of the asset, the target is to re-finance the property at an improved valuation to facilitate payment of a Special Distribution to investors, in addition to the regular distributions.
  • The asset is currently under-rented, presenting an opportunity to drive further uplift in income through the resetting of leases to market rates.
  • The site is currently underdeveloped, with an expired development application for a further 520sqm of retail space. We intend to explore the option of expanding the Centre to further maximise the asset’s value.
  • The transaction is underpinned by high underlying land value (estimated at 60% of purchase price) and the property was acquired below replacement cost.
  • The Centre is located in the affluent riverside suburb of Sinnamon Park, 14km from Brisbane’s CBD. This area has recorded sustained population growth, with strong future growth potential.

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