This article is from the Australian Property Journal archive
FOLKESTONE has sold stage 1 of the Millers Rd in Altona North to a new unlisted fund – the Folkestone Real Estate Income Fund.
The 21,500 sqm large format retail centre is 99.6% pre-committed and will be anchored by Bunnings and includes Officeworks, together with JB HiFi, Repco, PETstock and petVet.
In addition, Folkestone has sold a 8,063 sqm site adjoining the centre to Aldi to build a 1,600 sqm supermarket.
Folkestone has appointed FDC Construction and Fitout to build the centre.
“We are delighted to be in a position to commence stage 1 works and construct a large format retail centre anchored by leading tenants such as Bunnings, Officeworks and JB Hiâ€Fi Home. Altona North is undersupplied with quality large format and convenience retail and we believe the Centre will be well supported by the community,” Folkestone’s head of real estate Ben Dodwell said.
The development is the last remaining project in the original Folkestone portfolio, prior to the recapitalisation and restructure in 2011
Managing director Greg Paramor said the fund is seeking to raise $16.35 million from investors and has a forecast annualised distribution yield of 8.5% per annum in FY14 and FY15 with distributions to be paid quarterly.
“This is the third in our real estate income fund series, and we believe the strong lease covenants, the weighted average lease expiry of 10.6 years, and the attractive yield will appeal to investors looking for longâ€term stable income from quality real estate assets,” Paramor said.
Property Review
