This article is from the Australian Property Journal archive
GDI Property Group has snapped up the Ikea store in Innaloo, Perth for $143.5 million on a passing yield of 7.8%, after offloading a Sydney office building for $252 million.
GDI has acquired the store located at 6 Sunray Drive Innaloo. The 27,077 sqm Ikea store was purpose built in 2008 and comprises two floors of retail space, a 400 seat restaurant and café, a Swedish food store, and high clearance warehousing. There is a further 2,933 sqm of accommodation over four peripheral retail units leased to multiple tenants. There is onsite parking for approximately 1,000 cars.
The property has a weighted average lease expiry of over five years, with the lease to Ikea expiring in February 2023, although the Swedish furniture giant has three further five-year options.
The lease term has both CPI and market reviews, both of which are subject to a ratchet clause.
GDI will fund the acquisition through a new unlisted unregistered managed investment scheme, the GDI No. 43 Property Trust, which is forecast to have a commencing yield of 8% p.a. The capital raising is expected raise $96 million and GDI intends to co-invest in the trust.
The Innaloo acquisition comes hot on the heels of GDI selling 66 Goulburn St Sydney to Singapore’s Ascendas Singbridge for $252 million after buying it only three years ago for $136 million.
The group bought the property in July 2014 for $136 million – below the replacement cost – from the Charter Hall-managed PFA Diversified Property Trust and Australand (now Frasers Property Australia).
Australian Property Journal
