Fund Managers Trade Gateway Snowy Mountains Mall
FRP Capital banked a modest capital gain from Snowy Mountains region shopping centre held two years.
The Coles anchored Centennial Plaza at Cooma fetched $13.75 million following an off-market campaign.
The Adelaide fund manager paid $13.5m.
The asset with a 2.7 million annual catchment, mainly from visitors to snowfields including Perisher, Thredbo and Charlotte Pass, was also offered with an 18-month rental guarantee.
High yield deal between fund managers
Buyer, Brisbane based fund manager Natgen plans to increase the income Centennial Plaza can earn, over a five to six year period.
On 6099 square metres at 116-128 Sharp Street, it contains 4395 square metres, with 80pc of income derived from leases with fixed increases.
Bendigo Bank, Commonwealth Bank, Ray White and The Reject Shop are other high-profile occupiers.
Coles will be presented with a 20 year option in 2030.
Also with the region’s only Tesla supercharger, Natgen managing director Steven Goakes, said “fundamentals here – strong tenancy mix, regional economic growth and significant barriers to new competition – give us confidence in delivering long-term value for our investors”.
“This is a high-quality retail centre at the heart of a thriving regional economy underpinned by agriculture, tourism and multi-billion dollar infrastructure projects like Snowy Hydro 2.0,” he added.
“Centennial Plaza offers investors an attractive combination of immediate yield of eight percent and long-term development upside,” according to the executive.
The price is also about 40pc below replacement cost, Mr Goakes said “[giving] us a significant value buffer from day one with the centre generating immediate, stable income”.
Last month Real Estate Source reported Natgen, for a single asset fund to run five years, acquired a strata titled healthcare investment at Southport on a 7.3pc net passing yield.
The fund manager also last year bought an office in Helensvale, again on the Gold Coast, outlaying $9m.
Article by Real Estate Source
Written by Marc Pallisco
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