Argus, Kaipara divest another ex-Masters
Argus Property Partners and Kaipara Property Group have turned another major profit selling a Masters-converted-large format retail centre after a reposition.
The asset managers this week settled the sale of Home Centre Wagga Wagga to Westbridge Funds Management – for $45 million.
Reported in March, the deal was since promoted by the buyer, which successfully raised $26.5m from wholesale investors for the single-asset trust that will hold it.
The vendors paid $23m off-market in 2021; on 4.1 hectares at 143 Hammond Avenue and 111 Kooringa Road, East Wagga Wagga, it contained 16,816 square metres and 434 car parks.
They immediately secured leases for 6000 sqm and committed existing tenants to longer terms.
Two pad sites were also permitted to replace 47 parking bays at the busy north east corner of Kooringal Rd, opposite a McDonald’s.
Argus and Kaipara pre-committed Oporto and Kickstart to those, before offering the complex for sale fully leased, with a weighted average lease expiry of 6.75 years. Anaconda, Autobahn, Petstock, RSEA, Spotlight and Supercheap Auto are other high-profile occupiers.
The deal comes 10 since we reported the asset managers sold a Masters-converted LFR investment at Bathurst, again for almost than twice the 2021 outlay.
Westbridge doubles down in NSW
Home Centre Wagga Wagga is trading on a 6.5 per cent yield.
Westbridge is expecting rental growth – telling potential shareholders 80pc of space is rented at below the market rate.
It is the second New South Wales acquisition for the Perth based fund manager; last August it outlaid $18.3m for North Tamworth’s Coles-anchored Northgate Village.
JLL’s David Mahood, Sebastian Fahey and Sam Hatcher brokered both deals.
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