This article is from the Australian Property Journal archive
AVENTUS Retail Property Fund has acquired a $219 million portfolio of five large format retail centres, on a weighted average capitalisation rate of 7.38%.
The properties were purchased in an off-market transaction and are heavily weighted towards metropolitan Sydney and Brisbane – 90% by value, and reflect a rate of $2,523 per sqm.
The portfolio includes:
– Home Central Bankstown, NSW for $53.3 million on a cap rate of 7.25%, a 17,171 sqm centre on a 40,240 sqm site.
– Home Central McGraths Hill, NSW for $36.1 million on a cap rate of 7.25%, a 16,478 sqm centre on a 37,840 sqm site.
– Home Central Shepparton, Vic for $21.6 million on a cap rate of 8%, a 13,661 sqm centre on a 30,290 sqm site.
– Logan MegaCentre, QLD for $81.9 million on a cap rate of 7.25%, a 26,998 sqm centre on a 26,790 sqm site.
– Macgregor MegaCentre, QLD for $26.1 million on a cap rate of 7.75%, a 12,505 sqm centre on a 29,128 sqm site.
The portfolio has a 83% lease profile of Bunnings, Harvey Norman, Freedom Furniture, Spotlight and The Good Guys tenancies, with structured rental growth with 90% of leases subject to fixed or CPI annual rent increases.
Aventus Property Group CEO Darren Holland said the fund will now own a diversified portfolio of 20 large format retail centres, with over 470,000 of retail showrooms, on site area of more than 1,094,000 sqm and value of around $1.2 billion.
The fund also announced is it undertaking a fully underwritten three for 20 accelerated non-renounceable entitlement offer of units in the fund at a fixed issue price of $2.03 to raise $104.5 million, partially to fund the acquisition.
The value of the fund’s portfolio will increase by 22% to $1.195 billion as a result of the acquisition, with the 1H17 FFO per unit now forecast to be 8.7 cents, up from the PDS forecast of 8.3 cents, and 1H17 distribution per unit 7.75 cents, up from the PDS forecast of 7.50 cents.
Distribution for the end of the June quarter is expected to be 3.68 cents and the fund’s gearing will be 37% on a pro forma bases as at 31 December 2015.
Australian Property Journal
