This article is from the Australian Property Journal archive
PERTH-based fund manager Mair Property Funds (MPF) has snapped up a neighbourhood shopping centre in Brisbane’s north for $14.2 million on a net initial yield of 7.7%.
MPF acquired the Castle Hill Village Shopping Centre at 264 Dohles Rocks Rd Murrumba Downs, as the first asset for its latest investment fund.
The property was transacted through Joe Tynan, Dillon Murphy and Michael Hedger of the CBRE Queensland team and Peter Melling and David Ellwood from MPF.
Melling said the fund manager was attracted to the property’s dynamic tenant mix, which provided a diversified income stream for investors, as well as the potential to improve income.
The property comprises three buildings accommodating 19 tenants and anchored by national tenants McDonald’s, IGA and BWS. It also includes a medical practice and a diverse range of smaller speciality stores.
The McDonald’s lease runs until 2033 and includes a series of 10-year options, while the IGA lease runs until 2024. Overall, the property, which has a land area of 9,733 square metres and a gross lettable area of 2,773sqm, offers a WALE of 6.8 years.
“CBRE identified MPF as a strategic purchaser of the centre based on their acquisition of another IGA asset in Queensland in 2016,” Tynan said.
Melling said the fund has already commenced a search for a second commercial asset and will be open for further investment in early 2017.
The acquisition takes the value of properties under management by MPF above $180 million across three states.
Australian Property Journal