Description

Investment proposition -Canberra retail centre – to be syndicated into $100,000 allots

The retail centre has been acquired and is ready for shared investing via a syndicate.

It is located Belconnen, 11 km from Canberra CBD and adjoins a Bunnings.

The property has a gross area of 3,600 sqm approx and its 5-year-old.

It has basement car parking and also adjoins the Capital” food marketplace shopping centre which reportedly cost over $100M to construct.

It is leased by national retailers such as Chemist Warehouse, Pet Barn, BBQs Galore, Andersons Carpet, and a few other independents.

And has been acquired at a 7% initial yield and is due to settle in March 2025.

I think this is an exceptionally good buying yield in times when quality retail real estate like this typically sells on yields around 5%.

In terms of the proposition, an allotment in the syndicate can be $100,000 or more for wholesale investors.

The proposed investment term is only 4 years possibly shorter and will provide monthly distributions along the way. As I think the property was purchased so well, I envisage that there will be built-in value right from the investment’s commencement. And, as the property is relatively small, it will also have a relatively small equity raise of about $14 million.

And for the eventual realization this is where it gets interesting….Since the property is already strata-titled into 7 allotments, it is likely that the most effective return will be to sell down each of the 7 strata title units during the syndicate term to take advantage of the lower yields achievable by selling the property in smaller allotments. The recent rate reduction will assist this as well.

Additionally, there are two major high-rise residential towers currently under construction, which are projected to be occupied in 2026.

This should bring even more customers to the centre during the investment’s ownership.

In summary then, I expect that this particular offer will appeal to you as it:

1. Has been purchased well.
2. Offers generous monthly distributions.
3. Has a terrific sell-down plan.

Is in a trading location that is becoming even busier, potentially putting upward pressure on rentals.

The investment is being offered by a fund manager we have been supporting for nearly a decade.

Over that time, they have offered other exceptional industrial and shopping centre investments like this in and around Sydney and Brisbane.

They (the fund managers) have prepared an Information Memorandum detailing how they intend to undertake this process to deliver the desired results to investors.

For further details please contact Rob Stanley-Turner 0418982000/rob@boxcom.com.au

Disclaimer:

All areas and figures are approximate only. All reasonable steps have been taken to ensure the accuracy of this information and this does not constitute any representation by us as agent and should be considered a guide only.