Case Study - Retail & Diverse Medical

Asset

Rededge Retail Centre, 30-32 Cypress Street, Redland Bay

Asset Description

Modern Brisbane area IGA anchored retail & medical centre. Excellent tenant mix with solid rental yield and fixed annual reviews.

Timing

Acquired August 2017

Location

Redland Bay, South East Queensland, Australia

Capital Cost (inc Acquisition costs):

AUD $17.3 million

Finance

60% LVR, Variable at 4.00%, non-recourse

Net Passing Yield on Acquisition Cost

7.86%

Distributions to Investors (paid monthly)

9.00% Year 1, increasing to9.25% Year 2


What makes this a good investment?

Asset attributes

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.

The Tenant

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.

Commercial terms

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.