New Kmart Port Macquarie centre sells for 6.61% return.
MPG Funds Management has purchased a Kmart anchored retail property two kilometres west of the Port Macquarie CBD from Kmart Australia Limited, representing an initial yield of 6.61 per cent.
The 24,250 sqm site fronts Warlters and Park Street and will be anchored by a 6,660sqm* full line Kmart store on a 12 year lease, complemented by 1,091sqm* of specialty retailers, all of which are guaranteed by a Kmart Australia Limited covenant.
The property was purchased from Kmart Australia Limited as a ‘sale and lease back’ via a “Fund-Through” structure with the store anticipated to commence trade by early 2017.
An MPG spokesperson stated “MPG Funds Management Ltd sees Kmart Port Macquarie as a strategic investment in line with our ongoing acquisition of prime retail investments across Australia”.
The sale was negotiated by James Wilson, NSW Director of Retail Investment Services at Colliers International, who said “This sale is an acknowledgment of Kmart’s performance as a business, with investors very comfortable with the security and growth provided by the Wesfarmers backed discount department store.
“The transaction highlights the strong appetite for NSW retail investments, particularly in the highly competitive sub $50 million market in which highly capitalised investors are utlising a record low interest rate environment to become competitive in a market starved of quality opportunities” he said.
Now that Kmart Australia Limited have secured their future for its retail store they will be launching the adjoining 5,771sqm (approx.) mixed use site to marked in July with Colliers International agents James Wilson and Peter Macadam.
The 5,771sqm (approx.) site has flexible B3 Commercial Code zoning under Port Macquarie-Hastings Local Environmental Plan. Interest is anticipated to be around $6 million for this high profile development opportunity in the heart of Port Macquarie.
The property is ideally located with immediate surrounding development comprising single detached residential dwellings and some walk up residential apartment buildings to the south, St Joseph’s Primary School to the west, Port Marina to the north east and Settlement City Shopping Centre and Port Macquarie Panthers Club to the north west of the site.
Road accessibility to the centre is convenient for the broader region with links to Hastings River Drive and Oxley Highway, the two major arterial roads throughout the region.
Port Macquarie is a popular tourist destination, accommodating a steady increase of visitors. By the end of 2013, there were approximately 1.5 million visitors per annum, which is equivalent to year round population of 9,000-10,000 people.