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Newmark Property REIT has spent $57 million to acquire a large format retail site in Underwood, south of Brisbane.
Newmark announced the off-market acquisition via a notice to the ASX.
The 2.8ha site at 1-17 Compton Road is a purpose-built large format retail site next to Bunnings Underwood at the crossroads of Compton and Kingston roads, 20km south-east of the Brisbane CBD in a significant growth corridor.
Newmark bought a 100 per cent stake in the freehold for the site.
The site has four buildings with a total net lettable area of 11,115sq m— tenants include Officeworks, Supercheap Auto and Sydney Tools.
It has a 99 per cent occupancy rate and a weighted average lease expiry of 6.3 years with tenants from the medical sector and national retailers.
There is also an average rent increase of 3.1 per cent per annum.
Newmark Property REIT fund manager Ed Cruickshank said the acquisition increases Newmark Property REIT’s portfolio to nine properties with 21 per cent of its portfolio now based in Queensland.
“This high-profiled LFR property is located in a thriving local economy and anchored by high-quality, strong-performing tenants on long-term leases with attractive built-in growth,” Cruickshank said.
“The acquisition is complementary to Newmark Property REIT’s strategy and existing portfolio and provides the exposure and diversification of geography and defensive and growing income profile that Newmark Property REIT is seeking to provide its investors.”
Newmark Property REIT’s portfolio is estimated to be valued at $620.25 million post-settlement of the latest acquisition.
Post-settlement, around 74 per cent of Newmark Property REIT’s portfolio will be leased to Wesfarmers group entities.
The acquisition is funded via Newmark Property REIT’s existing debt facility and settlement is expected in early September 2022 provided certain conditions around tenancy handover and development approval are met.
CBRE’s Joe Tynan and Michael Hedger brokered the sale.
