Seven month old Quanta Investment Management has bought and sold similar priced assets at the country’s top and bottom end.
In the biggest deal, for a single asset fund which closed subscribed three weeks after calling for backers – the group is outlaying $13.5 million for a Launceston everyday retail investment on 5500 square metres at the south east corner of St John Street and the Esplanade, opposite the North Esk River.
Also fronting William St, where it is diagonally adjacent to a Sebel hotel, the 3423 sqm property is leased to BCF, which just took over a Ray’s Outdoor tenancy, Beacon Lighting, Rabobank and Super Cheap Auto; the Weighted Average Lease Expiry is 4.3 years.
There are also 59 car parks.
The first asset of its type for Quanta – its director, Stacey Jones, describes it as a low-risk, high-return proposition.
“Much like Ann St, we were able to fully subscribe the Launceston Trust opportunity within three weeks and secure a first year distribution of eight per cent – a great indication that we’ve got the right team and the right approach when it comes to delivering value for our investors,” according to the executive.
“There is a lot of appetite out there for high quality retail investments, particularly where the tenancy mix is strong and there is potential for income and capital growth over time”.
The property previously traded for $9.751m in July, 2015 – soon after a refurbishment.
Tablelands Big W sold
Meanwhile at Atherton, in Queensland’s Tablelands region, Quanta has sold a Big W backed asset (pictured, top) for $11.8m (story continues below).
On 1.1 hectares at 8-20 Mabel St, the 4482 sqm complex was developed in 2006 for the retailer – the only discount department store in the town’s main trade area.
The purchaser is a local private investor.
The result reflects a 7.75pc yield.
CBRE’s Joe Tynan, Josh Scapolan and Danny Betros said their sale is one of the biggest in the Tablelands region for over 20 years.
“Our four week expressions of interest campaign generated…seven formal offers from high net worth private investors, syndicates and institutional funds,” Mr Scapolan added.
“The sale demonstrates there is continued buyer depth for regionally located, freestanding assets underpinned by strong covenants which provide income security and management benefits,” according to the executive.
“[It is also] positioned to capture the growing population of Atherton with the main trade area expenditure estimated to be $617.5m in 2022 and forecasted to grow at an average annual rate of 3.2pc to reach $953.6m by 2023”.
Atherton is about 90 kilometres south west of Cairns.
Following the Mabel St sale, Quanta – formerly an arm of Sentinel Property Group – manages a diversified portfolio worth over $750m.
“Ultimately we want our investors to have more choice across the risk-return spectrum, and in varying markets and sectors when it comes to investing in commercial real estate, so that they can access opportunities that suit their needs, and grow stronger financial futures,” Ms Jones said.
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