This article is from the Australian Property Journal archive
REAL estate fund manager, EG, has not quite finished with acquisitions for the year, with the purchase of a Bunnings in Rockdale for $48.75 million.
Located at 383-387 West Botany St and situated 3.5km south of Sydney Airport, the property is the fourth acquisition under the EG ACE Fund since its launch.
It is currently fully leased to Bunnings, including two ancillary retail uses, with a WALE of 3.6 years and a yield of 5.4%.
The hardware chain, already a desirable investment, has only continued to thrive over the pandemic. Most recently HomeCo acquired the Seven Hills site and Charter Hall acquired six Bunning assets for a combined $353 million.
“This acquisition is underpinned by a strong covenant in Bunnings (Wesfarmers). The property has a flexible zoning which offers multiple exit strategies in the future,” said Will Clark, senior manager of capital transactions at EG.
Infrastructure upgrades to the M6 Motorway should also increase accessibility and traffic to the location.
The EG ACE fun was launched in June of 2019, with an equity commitment of $500 million, while EG overall invests $3.2 billion in the market for super funds and private wealth clients.
“The fund currently has the potential to acquire a further $800m in assets, which will continue to grow over time. The strategy is to acquire well located industrial, office and retail assets across Australia with the potential to add value through active asset management,” said Michael Noblet, fund manager at EG.
In recent months the fund acquired two Toyota dealerships, in Brisbane for $13.6 million and Sydney for $23 million, a Redfern urban renewal site, as well as following the market trend and investing $72 million in COVID resilient industrial and healthcare sectors in August.
The sale of the NSW property was brokered off-market.
