Perth-based fund manager Mair Property Funds (MPF) has acquired a busy neighbourhood shopping centre in Brisbane’s north as the first asset for its latest investment fund.
MPF acquired the Castle Hill Village Shopping Centre at 264 Dohles Rocks Road, Murrumba Downs 26 kilometres north of the Brisbane CBD, for $14.2 million, reflecting a net initial yield of 7.7%.
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.
Mr 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,” Mr Tynan said.
“The property is in a high exposure location which has a projected population growth of 4% p.a. due to the proposed Petrie University Precinct. This precinct is being fast tracked by the Queensland government, as is the rapidly expanding North Lakes region,” Mr Tynan said.
The property is the first acquisition within MPF’s latest investment trust, the MPF Retail Fund, which is projected to provide initial distributions of 7.5% to investors.
The Fund has been established to purchase retail property assets in expanding demographic areas throughout Australia.
“‘Castle Hill Village Shopping Centre is centrally positioned to benefit from the high growth in the immediate area and was a very strategic acquisition for MPF,” Mr 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 as the company continues to grow its funds to meet investor appetite.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
