This article is from the Australian Property Journal archive
WARREN Ebert’s Sentinel Property Group has snapped a Bunnings-anchored homemaker centre in Newcastle for $23.3 million on a passing yield of 7.94%.
Located at 8 Griffin St Heatherbrae, the property is set on a 4.57ha site with a lettable area of 17,181 sqm and it will be the third addition to the Sentinel Homemaker (Open Ended) Trust, which also includes City West Plaza at Sunshine in Victoria and the Geraldton Homemaker Centre in Western Australia.
Bunnings, which took over the Heatherbrae tenancy last year from its failed former rival Masters, occupies 77% of the property and generates 66% of its passing income. The other tenants include BCF and PETstock.
The complex has a weighted average lease expiry (WALE) of 3.65 years and returning a passing income of approximately $1,849,534 per annum. The property has excellent frontage to the Pacific Highway with exposure to 40,000 vehicle movements per day.
Ebert said this was the group’s third acquisition in the Hunter region, with Sentinel also owning an industrial facility at Mayfield and an office building in Argyle Street in the Newcastle CBD.
Ebert said Sentinel was excited about the potential in Newcastle with the city undergoing major renewal with infrastructure projects such as the light rail, the new CBD University of Newcastle campus and also the Hunter region’s proximity to Sydney all major attractions.
“I think Newcastle has a fantastic future and we like to buy in locations that mainstream investors aren’t targeting,” he said. “A recent commitment from the Port of Newcastle to develop a world-class container terminal will also help boost jobs and business opportunities in the Hunter region.”
Australian Property Journal
