Perth-based Kerching Capital is expanding its retail property holdings by securing its third IGA-anchored shopping centre in Queensland for about $10.4 million, according to The Australian.
The property investment group has purchased Sandstone Village, a strong performing neighbourhood shopping centre in the Brisbane suburb of Sandstone Point.
Comprising a net lettable area of 2,289 sqm, the modern neighbourhood shopping centre securely anchored by an IGA supermarket with a Metcash Limited guarantee and 7 specialty stores, including a BWS Bottle Shop, Century21 Real Estate Agency, Dentist, Medical Centre, Pharmacy, Newsagent and Hairdresser.
Property features:» Target Internal Rate of Return (IRR) of approx. 14%.
» Current fully let income forecast at $775,000 pa.
» IGA accounts for 53% of GLA with a 15yr lease with 2x 5yr options expiring 2031.
» Weighted Average Lease Expiry (WALE ) anticipated > 5yrs.
» 161 onsite car spaces.
Sandstone Point is a suburb approximately 52 kilometres north of Brisbane within the Moreton Bay Region. It is located across the bridge from Bribie Island and has views of Moreton Bay.
The shopping centre is approx. 2,289 sq. metres of gross floor area with 152 at grade car bays. There is the potential for re-development upside to increase the floor area.
An independent market assessment report undertaken in May 2016 provided the following advice on the centre and catchment area:
Kerching Capital has picked up a series of smaller centres since buying the Calliope Shopping Centre last year for about $20m.