Interstate investor buys Canberra LFR complex
A large format retail complex with 150 car parks, in Canberra’s south east, settled to an interstate investor this month.
The $17 million result for Iron Knob Square at 17 Iron Knob Street, Fyshwick, reflects a 5.7 per cent net passing yield based on the return when the asset was listed mid-year.
Eleven offers were received following an expressions of interest campaign, the agents said.
The deal comes five months since Gibbens sold a Newcastle LFR investment held 11 years while Melbourne’s Dimmick family shed one on the Sunshine Coast.
HMC Capital offloaded two properties of this type this year, at Ballarat, Victoria, and Brisbane’s Logan, the latter to Centuria.
Iron Knob Square
On 1.02 hectres, Iron Knob Square is fully leased with 5068 square metres in 12 tenancies.
Auto One, Chemist Warehouse and Ten Tops are the anchors.
Some of the car parks are undercover.
The holding is opposite Armada Funds’ Canberra Outlet Centre, with 120 retailers including Amart, BCF, Bing Lee, Bunnings, Domayne, Harvey Norman and Tool Kit Depot.
Burgess Rawson for CBRE’s Yosh Mendis and Geoff Sinclair with Burgess Rawson ACT’s Guy Randall were the agents.
The buyer outbid other interstate investors, according to the executives.
“The property enjoys fixed annual rent escalations between 2.5- 4pc, enhancing its long-term income profile, they added.
Fyshwick is five kilometres from the CBD.
The property is a c3.5km drive to Canberra International Airport.
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