Case Study - Retail

Asset

Bribie Retail Centre, 5-7 Fortune Avenue, Bongaree, Bribie Island

Asset Description

South East Queensland suburban shopping centre with high retail yield and rental upside via market reviews at option.

Timing

Acquired late 2016

Location

Bribie Island, Queensland, Australia

Capital Cost (inc Acquisition costs):

AUD $7.98 million

Finance

60% LVR, Variable at 4.03%, non-recourse

Net Passing Yield on Acquisition Cost

7.54%

Distributions to Investors (paid monthly)

9.00% in Year 1 & Year 2


What makes this a good investment?

Asset attributes

Prominent main road location with signage, easy access and parking, solid construction, modern low maintenance building. Adjacent to major Translink bus station and new Bribie Lakes residential estate.

Tenants

Excellent and secure mix for local demographic.

3 out of 4 tenants are ASX listed (Super Cheap Auto, Dominos, UBet).

Commercial terms

Purchased at high yield compared to other retail investments.

Net leases and greater than CPI reviews for 3 out of 4 tenants.

Opportunity to reset below market rents on option (8.7% increase recently negotiated with Dominos).


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