This article is from the Australian Property Journal archive
CONVENIENCE Retail REIT has made its second acquisition since listing on the ASX mid-year, paying $4.4 million for the 7-Eleven Dakabin site in Brisbane’s north-western suburbs.
The site was completed in August last year and sold in an off-market deal with a 13.7-year WALE and annual CPI rental increases.
The purchase will take the fund’s portfolio to 68 properties valued at $317.2 million, with weighted average capitalisation rate of 7.2% and WALE of 13.0 years, and gearing of 31%.
Puma Energy Australia service stations account for some 65% of assets held by the fund, overseen by Melbourne base APN Property Group.
CRR fund manager, Chris Brockett, said the Dakabin property is ideally situated on a prominent intersection in one of Australia’s fastest growing regions, providing outstanding exposure to high volumes of traffic.
“This is CRR’s second additional acquisition following the IPO earlier this year, delivering on our strategy of seeking opportunities that will further enhance portfolio metrics and securityholder returns over the longer term,” he said.
It will be funded from existing debt facilities, and after settlement the fund will have further debt funding capacity of around $26 million with a current incremental funding cost of circa 3.1% per annum.
Australian Property Journal
