Dexus, for its managed Convenience Retail REIT (DXC), has snapped up the Glass House Mountains dual service centre on either side of the Bruce Highway at Coochin Creek, near Caloundra.
The asset – northbound and southbound Shell petrol stations and Hungry Jack’s restaurants – a McDonald’s outlet and convenience retail buildings leased to, amongst others, Subway and Beefy Pies, is trading on a 4.9 per cent yield.
Improvements cover 21pc of the 2.48 hectare amalgamation.
More than 27,000 cars pass daily, the buyer said, a number set to balloon with the construction of a recently permitted Urbnsurf inland surf park next door.
Sites set to be redeveloped, extended
Dexus is set to redevelop the properties, adding more retail.
“This is a unique opportunity to acquire high performing prominent dual highway sites which reinforces our disciplined and opportunistic approach to acquisitions,” DXC fund manager Chris Brockett said.
“The surplus land together with the proposed surf park on the adjoining property provide immediate development and value-ad opportunities, which we have already made solid progress on,” he added (story continues below).
The asset is presently nine per cent vacant.
Fund approaching $1b
Dexus took control of the fund when it merged with APN last year; the trust was formerly known as the APN Convenience Retail REIT with ASX ticker AQR.
Following settlement of the Coochin Creek assets this month, the portfolio value is $843m reflecting a Weighted Average Capitalisation Rate of 5.8pc.
The Weighted Average Lease Expiry is 11.3 years.
Gearing will be up slightly – to 34.6pc – within the manager’s 25-40pc target.
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