Primewest spends $66m on bulky goods investment
EXCLUSIVE
Primewest is paying QIC $66 million for Home+Life Robina, about 10 kilometres south of Surfers Paradise.
The investment will seed Large Format Retail Trust No 2, set to be worth $150m and run five years.
With 13 showrooms and a café, the 14,782 square metre Gold Coast centre covers 41 per cent of the 3.62 hectare site.
There is a 2280 sqm vacancy; the vendor will cover this via a rental guarantee but the buyer will be responsible for filling it.
On the passing rent, the sale price reflects a 6.2 per cent yield.
Based on its fully-let net income ($3.95m), the return is 5.94 pc.
Primewest, which has entered into an unconditional put-and-call option deed, is closing a capital raising for LFRT2 on April 9, aiming to settle the week after.
Home+Life Robina
Home+Life Robina replaced one of four blocks QIC acquired 19 years ago.
The vendor offloaded one of the others, now a Bunnings warehouse, in December (story continues below).
Along with the Robina Town Centre and Robina Auto Mall, the properties form one of Queensland’s largest retail precincts, according to Primewest.
They are also surrounded by many new housing estates.
Nick Scali and the tenancy covered by the rental guarantee each pays about 14pc of the asset’s income.
The Good Guys, Bedshed and James Lane are the next biggest contributors.
Other occupiers include DecoRug, Early Settler, Forty Winks, Kitchen Connection, Petstock, and Supercheap Auto.
There are 315 car parks.
Savills’ Jon Tyson and Peter Tyson with JLL’s Sam Hatcher and Jacob Swan closed an expressions of interest campaign for the Home+Life Robina Centre at 550 Christine Avenue, a month ago.
The complex’s trade catchment, according to the marketing material, is 580,990 – set to increase by nearly 100,000 by 2030.
Primewest will also be able to claim some depreciation benefits.
