Sentinel Property Group is paying $23.3 million for a Bunnings-anchored homemaker centre near Newcastle.
The 4.6 hectare site, containing a 17,171 square metre facility of which Bunnings occupies 77 per cent, will be put into Sentinel’s (Open Ended) Homemaker Trust.
The other occupants include BCF, Dons Tiles and PETstock.
Based on the annual rent the asset returns – $1.85 million – it is trading on a high passing yield of 7.9 per cent. The investment has a weighted average lease expiry of 3.65 years posing some risk if the hardware giant moves on. Part of the complex is currently for lease.
Known by the address of 8 Griffin Street, Heatherbrae, but also accessed from the busy Pacific Highway, the holding was until a couple of years occupied by Bunning’s now-redundant rival, Masters.
Earlier this week we reported that Masters first Australian store, in Melbourne’s Braybrook, will reopen as a shopping centre.
Elsewhere in New South Wales’ Hunter region, Sentinel controls an industrial facility at Mayfield and an office building in Argyle Street, in the Newcastle CBD.
“I think Newcastle has a fantastic future and we like to buy in locations that mainstream investors aren’t targeting,” Sentinel managing director Warren Ebert told realcommercial.com.au which is reporting the group’s latest buy.
“A recent commitment from the Port of Newcastle to develop a world class container terminal will also help boost jobs and business opportunities in the Hunter region.”