Case Study - Retail & Diverse Medical
Rededge Retail Centre, 30-32 Cypress Street, Redland Bay
Modern Brisbane area IGA anchored retail & medical centre. Excellent tenant mix with solid rental yield and fixed annual reviews.
Acquired August 2017
Redland Bay, South East Queensland, Australia
Capital Cost (inc Acquisition costs):
AUD $17.3 million
60% LVR, Variable at 4.00%, non-recourse
Net Passing Yield on Acquisition Cost
Distributions to Investors (paid monthly)
9.00% Year 1, increasing to9.25% Year 2
What makes this a good investment?
Well presented modern building with 2 street access and significant open and undercover parking. Located in prominent and highly exposed corner position in established but strongly growing affluent area.
Diverse and secure mix. 40% of rental from medical and30% from national brands. Quality IGA and medical anchors.
Busy “destination” centre that trades 7 days per week.
Net leases with annual reviews in excess of CPI, many at 4%. Opportunity to add to income and capital growth with further complimentary tenancy additions.