New fund manager drops $20m for Melbourne showrooms
Year old asset manager Kinglake Group has made its biggest play yet – picking up a bulky goods investment in Sunbury, the heart of growth corridor.
The Sunbury Showroom complex, on 1.21 hectares at 85 Vineyard Road, set it back nearly $20 million – a six per cent yield – according too sources, following an off-market campaign.
At the north east corner of McDougall Road, giving it 221 metres of road frontage, on a major town route, it contains about 5550 square metres; major occupiers include The Good Guys, which anchors, Petstock, Repco, Total Tools and Worklocker.
There are also 143 car parks.
Burgess Rawson’s Zomart He, who brokered the off-market deal, said the area’s catchment is set to grow 4.85pc per annum through to 2041, adding another 60,000 people.
Secure tenant profile
Kinglake director Jamie Allen said the Sunbury asset has a solid tenant profile and secure income stream (story continues below).
“With limited supply and strong demand from occupiers, this asset aligns with our strategy of investing in high growth, tightly held retail precincts,” he added.
“The centre is directly opposite a Bunnings warehouse in the Sunbury Large Format Retail precinct, reinforcing its status as a prime retail hub,” according to the buyer.
Sunbury is about 38 kilometres north west of Melbourne’s CBD.
Kinglake also holds assets in the regional town of Bairnsdale and, in Brisbane’s Capalaba,
Late last year it sold a Supercheap Auto backed outlet in Melbourne’s north Fawkner.
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