Case Study - Retail
Bribie Retail Centre, 5-7 Fortune Avenue, Bongaree, Bribie Island
South East Queensland suburban shopping centre with high retail yield and rental upside via market reviews at option.
Acquired late 2016
Bribie Island, Queensland, Australia
Capital Cost (inc Acquisition costs):
AUD $7.98 million
60% LVR, Variable at 4.03%, non-recourse
Net Passing Yield on Acquisition Cost
Distributions to Investors (paid monthly)
9.00% in Year 1 & Year 2
What makes this a good investment?
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.
Excellent and secure mix for local demographic.
3 out of 4 tenants are ASX listed (Super Cheap Auto, Dominos, UBet).
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).