4 September 2018 – (Sydney, Australia) EG, one of Australia’s leading real estate fund managers, is preparing to sell the Brisbane’s North West Plaza after the execution of the asset's capital works program and in line with the positive market outlook.
The single-level Brisbane shopping centre was acquired in September 2014 offering a high-quality neighbourhood shopping centre, 8.5km north of the Brisbane CBD. As a part of the reposition EG undertook $2.4 million in upgrade works including a new entrance, paving and external driveway works, centre roofing and plant and machinery upgrades.
“The works carried out by EG have greatly improved the access and egress for upper deck carparks and we have received a large amount of positive feedback from shoppers” Divisional Director, Daniel Farley said.
Post-acquisition, EG’s leasing strategy was also able to achieve positive rental reversion through resetting of the tenancy mix. In addition, selection of new tenants for the centre has centred around a family and serviced based offering, furthering bolstering the non-discretionary nature of the asset.
“We believe that the property should be divested post completion of the strategy to take full advantage of the cap rate compression witnessed since the acquisition” says Farley. “The scarcity of competing product currently on market is also compelling” he continues.
EG has appointed CBRE’s Peter Rossi & Michael Hedger and JLL’s Jacob Swan and Sam Hatcher to manage the sale.
“We are continuing to see new lines of capital pursuing well-established metropolitan neighbourhood centres and see North West Plaza being well received with its diversity of income and strong trade area” Mr Rossi said.
“In addition to the strength of the Woolworths Supermarket anchor tenant covenant (initial expiry May 2032), North West Plaza has continued its evolution at the heart of Everton Park, providing the full range of essential services for the community” said Mr Swan.
The Core Plus Fund No 1 successor fund is now open for investment.
- ENDS -