Collective snaps up assets in Albury, Canberra
Findex has sold a Bunnings-converted-retail investment at Albury, near the New South Wales/Victoria border.
The Albury Convenience Centre at 618 Young Street has been picked up by Collective Capital – another Melbourne based funds manager.
Based on the annual net rent ($1,847,291), the $29.5 million deal reflects a 6.26 per cent yield.
The transaction comes two years since a private investor outlaid $16.5m – a 6.21pc return – for the North Albury Shopping Centre
In May, Charter Hall paid South Korea’s AIP Asset Management $85m for an ATO-backed office in the pocket, at 85 Smollett St.
Albury is about 350 kilometres south west of Canberra.
Albury Convenience Centre
The Albury Convenience Centre was only recently created out of a Bunnings outlet.
Findex paid $15.7m in 2012, refurbishing it seven years later for a speculated $5.5m, then re-letting.
Amart Furniture occupies the biggest component – spreading 5507 sqm.
Harris Farm Market rents the 4453 sqm balance; the outlet is the biggest of its 29 tenancies.
The 1.425 hectare block also fronts the Hume Highway – the main thoroughfare between Melbourne and Sydney.
There are 224 car parks.
JLL’s Stuart Taylor, Tom Noonan and Nick Willis represented Findex.
Bunnings relocated to East Albury.
Morrison government sells ex-Mint office
Also this month, Collective has paid c$11m for the two storey Questacon Administration Building – the former Royal Australian Mint office – at 60 Denison St, in Canberra’s Deakin (story continues below).
Fully leased for 10 years to the federal government – the vendor – the deal reflects a c8.2 pc gross return.
The 2374 sqm heritage protected building occupies a relatively small part of the 1.17ha block.
The property also contains 86 car parks.
Deloitte Real Estate’s Stephen Hynes was the agent.
Growing portfolio
Last May, Collective acquired a five storey office on 2501 sqm in Frankston, a major Melbourne activity centre.
The $20m price reflected a 6.2pc passing yield; just over a fifth of the 6254 sqm area was vacant.
The landlord – which is holding the asset in the Collective Capital Frankston Investment Fund – is planning a $2.1m refurbishment.
In late 2018, Collective paid $13m for the long-time Dennis Family Homes headquarters, at 203-207 Waverley Rd, Malvern East.
Offered vacant with a permit for a four-storey residential complex, the landlord instead renovated and re-let it.
Elsewhere in the Victorian capital, the manager and developer holds a 1142 sqm site at 33 Peel St, Collingwood, which was last year approved to make way for a seven floor office.
In Cairns, two years ago, Collective paid Elanor $14.7m for a newly completed office leased to the Queensland government at 157-159 Bunda St.
“We always invest in high growth locations and, in particular, properties that deliver both secure income streams and opportunities for yield uplift,” director Dale O’Dwyer said.
Of the Albury deal, Mr Taylor added “demand is being driven by strong retailer performance in regional areas, resulting from population movements and changing consumer habits, overlayed with a shortage of metropolitan assets being presented to the market”.
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