Private Syndicate Offloads $450m Retail Portfolio

An Australian-based investment syndicate has put a portfolio of 14 retail assets on the market with a $450m price tag.

CBRE’s Pacific head of Retail Capital Markets Simon Rooney has been appointed to steer the sale of the properties, which are predominantly single-tenant long WALE assets, with tenants including Bunnings, Woolworths and Coles.

The “blue-chip” sites span across five states including New South Wales, Victoria, Queensland, Tasmania and South Australia and offer a WALE of over eight years, with significant depreciation allowances, and minimal capital expenditure required in the short to medium term.

The listing follows the recent acquisition by Charter Hall’s Long WALE Hardware Partnership of six Bunnings stores across Australia for $353.2m.

“Having been actively pursued by numerous parties over recent years, the syndicate has decided to formally consider market approaches from a select group of investors via an off-market expressions of interest campaign closing in mid-March,” Rooney said.

“The type of assets on offer have been the real standout market performers both during, and as Australia emerges, from the current Covid-19 period.”

Rooney said demand for retail assets in 2021 was expected to focus on long WALE, primarily single tenanted, low volatility assets that were underpinned by strong covenants.

“This is expected to underpin ongoing interest in strong performing and highly resilient, food, service and grocery anchored assets which have a non-discretionary retail focus,” Rooney said.