Leyton quietly lines up Woolworths HQ
EXCLUSIVE
Leyton Funds has struck an off-market deal for Woolworths’ Queensland headquarters.
The nine year old office, 21 Brandl Street, Eight Mile Plains, within the Brisbane Technology Park, is speculated to be costing the asset manager less than $25 million.
Stronghold Investment Management is the seller; a sister company, Graystone, purpose-built the two level, 4169 square metre complex for the supermarket, which occupies 80 per cent.
Its lease expires in less than three years.
Canon Medical and Eirich Australia are other occupiers.
The office space is classified A-grade.
On 4566, the investment also contains 201 car parks – a high 1:21 sqm.
Stronghold unsuccessfully tried to sell the asset two years ago; at the time it was returning $2m annual net rent.
Price below replacement cost: Leyton
Adelaide based Leyton is now calling on investors for a single asset fund to hold the 21 Brandl St.
The price is 25pc less than replacement value, managing director, Warwick Mittiga, said.
“Acquired opportunistically, at a significant discount to long-term value, this investment is underpinned by excellent fundamentals of the Brisbane economy including strong population growth, robust employment and significant infrastructure investment,” the buyer added.
Forecast average distribution is eight per cent per annum paid quarterly.
A 12pc internal rate of return is being targeted.
The hold period is anticipated to be seven years.
Knight Frank’s Matt Barker, Blake Goddard and Justin Bond marketed the property, about 14 kilometres south east of town.
Earlier this week we reported Leyton sold a Perth quick service retail investment and gym for $8.75m – a 6.93pc yield.
In April the asset manager teamed with Drakes Supermarket founder Roger Drake to buy a Coles in Mt Gambier.
Twelve months ago, Leyton acquired a five level suburban Adelaide office, at Keswick, from Centuria.
That outlay was $38.25m.
Woolworths’ national headquarters, in Sydney, is owned by Singapore’s AIMS Financial Group, which paid $463.25m in 2021.
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