Stirling Property Funds is acquiring a south Brisbane homemaker centre from Aventus Group.
The deal for Macgregor Home at 555 Kessels Road is worth $42.15 million
It reflects an initial six per cent yield.
Aventus bought the property five years ago as part of a $219m portfolio deal with Blackstone; the carrying value was put at $26.1m.
On 2.9 hectares, it contains 12,330 square metres.
Focus On and The Good Guys occupy two of the six tenancies.
Harvey Norman recently vacated after buying a 2.4ha site nearby (572 and 588 Kessels Rd).
The deal comes a week after Amart Furniture founder John Van Lieshout spent $17.5m on a 1.1ha homemaker centre at 520 Kessels Rd.
One of our smallest centres: Aventus
“Macgregor Home is one of the smallest centres in the Aventus portfolio,” the vendor said.
“Aventus has successfully repositioned and remixed the centre and extended the Weighted Average Lease Expiry from 1.6 years (at acquisition) to 6.3 years,” it added.
Proceeds will initially repay debt.
“Based on recent transaction evidence, the board has commissioned independent valuations for the entire portfolio for June, 2021, as recent market transactions indicate strong investor demand and value uplift in large format retail centres given their performance through COVID,” according to Aventus (story continues below).
“It is anticipated that the outcomes of the independent valuations will be released to the market in late June, 2021”.
Third asset for Stirling fund
The purchaser intends to hold the asset in its Diversified Enhanced Yield Fund which is promising 7.1pc distributable income growth.
It would be the third investment for that trust – following the acquisition of neighbouring industrial properties in Newcastle’s Mayfield West.
“The fund’s investment strategy is to invest in quality commercial properties in high growth, regional capital cities,” Stirling’s chief executive officer Matthew Hyder said.
“Decentralisation, population growth and infrastructure investment is providing strong growth prospects for highly accessibly regional cities and targeted markets within capital cities,” he added.
“These long-term demand drivers coupled with the return premium available from investing in these markets is providing compelling risk adjusted returns for investors.
“Macgregor Home is strategically located within Brisbane’s established commercial precinct of Macgregor.
“The property has benefited from an extensive capital expenditure program in recent years”.
The group will embark on a capital raising over coming weeks to support the acquisition.
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