This article is from the Australian Property Journal archive
COMMERCIAL real estate investor Whitmore Property is launching a new large format retail fund that is targeting $150 million in assets tenanted by household brands including Supercheap Auto, The Good Guys and Subway.
The Whitmore Property Large Format Retail Fund is a “new investment opportunity designed to capitalise on the growing demand for commercial retail spaces”, it said.
“The fund will acquire and manage a diverse portfolio of large format retail properties, characterized by their substantial size, prime locations, and ability to attract anchor, blue-chip tenants.”
The fund is aiming for an initial distribution of 6.25% and an average seven-year distribution of 7.5%, and an internal rate of return of around 12.8%, with tax-deferred distribution components.
“The large format retail sector presents a compelling investment thematic, and our Fund is strategically positioned to deliver significant income and capital gains,” said Lauren Price, director of Whitmore Property.
“The Australian economic landscape provides strong tailwinds for the large format retail sub-sector. Robust population growth, increased consumer spending on household goods, and favourable interest rate forecasts are expected to drive demand for large format retail properties.
“The fund aims to capitalize on these trends by acquiring properties with strong cash flow, secure leases, and potential for future growth,” Price added.
Kain Lawyers worked with Whitmore Property on the Fund structuring and establishment of the Fund, including preparing the Fund’s establishment documents, information memorandum and management agreements.
In recent weeks, HMC Capital expanded its HomeCo Last Mile Retail Logistics Fund, picking up Brandon Park Shopping Centre in Melbourne’s south-east for $107 million from Chris Langford’s Newmark Capital.
Meanwhile, the HomeCo Daily Needs REIT has just offloaded the HomeCo Ballarat centre for $54 million. The centre is almost entirely occupied national tenants including Spotlight, Super Cheap Auto, PetBarn, Anaconda, BCF and Fantastic Furniture.
