Sentinel Property Group has purchased a Bunnings-anchored homemaker centre in a high exposure location at Heatherbrae for $23.3 million.
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The facility on a 4.57 hectare site with a lettable area of 17,181 square metres at 8 Griffin Street 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 per cent of the property and generates 66 per cent of its passing income. Other high-quality national tenants in the complex include BCF and PETstock.
The Heatherbrae complex, which is in the Port Stephens local government area close to Newcastle Airport, enjoys a weighted average lease expiry (WALE) of 3.65 years, with a passing yield of 7.94 per cent and passing income of approximately $1.8495 per annum. The property has frontage to the Pacific Highway.
Sentinel Managing Director Warren Ebert said it was the Group’s third acquisition in the Hunter region. Sentinel also own an industrial facility at Mayfield and an office building in Argyle Street in the Newcastle CBD.
Mr 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.”
Established in 2010, Brisbane-based Sentinel has a total national portfolio of more than 40 retail, industrial, office, land, tourism infrastructure and agribusiness assets in Queensland, New South Wales, Victoria, Western Australia, the Australian Capital Territory and the Northern Territory with a total value in excess of $1.1 billion.
