 Asset Class: | Retail |
 Price: | $ 10200000 |
 Net Yield: | 6.59 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
<span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Retail Asset in Key-Location with Multiple National Tenants & Significant Rental Upside</b></span><br><br><p style="padding-left:0pt;"><span style="color:rgb(0, 0, 0);background-color:transparent;">This exceptional off-market investment opportunity features a freehold land parcel of 6,218sqm, comprising six high-quality tenancies. Completed in 2020, the asset is anchored by a diverse mix of National and State Tenants, including Metro Petroleum, Hungry Jack’s, Chicken Treat, Domino’s, and Ultratune (lease pending finalization). With a WALE exceeding 7 years, the property provides a stable and secure income stream.</span></p><br><p style="padding-left:0pt;"><span style="color:rgb(0, 0, 0);background-color:transparent;">What makes this opportunity particularly compelling is the significant rental upside. Leases for tenants such as Hungry Jack’s and Domino’s appear to be well below market rates, with market evidence showing Hungry Jack’s achieving $750/sqm+ and Domino’s $500/sqm+. Ultratune is also commencing at a highly competitive rate of just $225/sqm. Based on current market benchmarks, the rental shortfall exceeds $180,000 annually. When capitalized at the purchase yield, this represents an estimated value uplift of $2.8 million. Market reviews are due in 5 years, in 2030.</span></p><span style="color:rgb(0, 0, 0);background-color:transparent;">According to Main Roads Traffic Map (2022/23), approx 14,387 vehicles pass this property daily on weekdays.</span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;">Brand Highway serves as the main connection between Geraldton and the south, ensuring that every vehicle traveling between Perth and Geraldton passes this property. This prime location offers exceptional visibility and strategic exposure.</span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>What We Like About This Asset</b></span><br><br><p style="list-style-type:disc;"><span style="color:rgb(0, 0, 0);background-color:transparent;">+ Substantial rental upside - Hungry Jacks leasing at $300/sqm (comparable around $750/sqm); Dominos leasing at $325/sqm (comps over $500/sqm)</span></p><p style="list-style-type:disc;"><span style="color:rgb(0, 0, 0);background-color:transparent;">+ Majority of buildings completed in 2020 > significant depreciation benefits</span></p><p style="list-style-type:disc;"><span style="color:rgb(0, 0, 0);background-color:transparent;">+ 4x National Retailers (Hungry Jacks, Dominos, Ultratune, Metro Petroleum); Chicken Treat 61 stores in WA</span></p><p style="list-style-type:disc;"><span style="color:rgb(0, 0, 0);background-color:transparent;">+ Strategic location - high exposure on only connection road between Geraldton and Perth (Brand Hwy)</span></p><p style="list-style-type:disc;"><span style="color:rgb(0, 0, 0);background-color:transparent;">+ Seller includes 1-year Rent Guarantee & Outgoings cover for remaining vacant space of 202sqm (Subway has shown interest in this location)</span></p>
How old is the asset?
Vendor's reason for selling?
Days property been on market?
Is this property strata titled?
Are the seller and tenant related parties?
How long has the current tenant been on site?
How long has the tenant been in business?
Is this property in a flood zone?
Is this lease a leaseback arrangement?
<span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Introduction</b></span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;">Geraldton, located 420 km north of Perth, is a thriving coastal city with a population of approx 47,000 and a diverse economy in agriculture, aquaculture, mining, manufacturing and tourism. With ongoing government investment and infrastructure upgrades, it is becoming an increasingly attractive location for property investment.</span><br><br><p style="list-style-type:disc;"><span style="color:rgb(0, 0, 0);background-color:transparent;">+ By 2036, the City’s population is forecast to grow more that 35% to 65,000, with employment set to increase by 50%</span></p><br><p style="list-style-type:disc;"><span style="color:rgb(0, 0, 0);background-color:transparent;">+ Geraldton is the location to Australia’s second largest grain export terminal and the closest general cargo/agriculture port to the emerging South East Asian food bowl marketplace.</span></p><br><p style="list-style-type:disc;"><span style="color:rgb(0, 0, 0);background-color:transparent;">+ Australia’s Coral Coast, encompassing Greater Geraldton, was host to a total 856,000 visitors (domestic and international) who stayed over 4.7 million nights. Within the Mid West, hospitality, tourism and retail sectors combine to contribute approximately $682m to output, employing 4,289 workers</span></p><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Lifestyle & Population</b></span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;">Geraldton offers an exceptional coastal lifestyle, making it an attractive place for families seeking a relaxed and community-oriented environment. With stunning beaches, excellent schools, and a growing economy, the city provides a well-balanced lifestyle that combines natural beauty with modern amenities.</span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;">Families in Geraldton enjoy an active outdoor lifestyle with access to some of Western Australia’s best beaches. The city is known for its world-class windsurfing, fishing, and water sports, making it ideal for those who love spending time by the ocean. Parks, playgrounds, and walking trails, such as those along the revitalised Geraldton Foreshore, provide plenty of opportunities for families to enjoy nature.</span><br><p style="background-color:transparent;"><br></p>
Additional Location Information File<span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Metro Petroleum</b></span><br><span style="color:rgb(0, 0, 0);background-color:transparent;">Metro Petroleum is one of Australia's largest independent service station franchises, offering fuel, automotive products, and convenience items across over 300 locations nationwide. </span><br><a style="color:rgb(17, 85, 204);display:inline;background-color:transparent;" target="_blank" href="https://metropetroleum.com.au/"><u>https://metropetroleum.com.au/</u></a><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Hungry Jacks</b></span><br><span style="color:rgb(0, 0, 0);background-color:transparent;">Hungry Jack's is a prominent Australian fast-food franchise specializing in flame-grilled burgers and a variety of other menu items. Established in 1971, the company operates over 440 restaurants nationwide, serving more than 1.7 million customers each week.</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"> </span><a style="color:rgb(17, 85, 204);display:inline;background-color:transparent;" target="_blank" href="https://www.hungryjacks.com.au/"><u>https://www.hungryjacks.com.au/</u></a><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Chicken Treat</b></span><br><span style="color:rgb(0, 0, 0);background-color:transparent;">Chicken Treat is a Western Australian fast-food chain specializing in rotisserie and fried chicken, as well as burgers and sides. Founded in 1976, it has expanded to over 60 outlets across the region. The menu features slow-cooked rotisserie chicken seasoned with Mediterranean spices, hand-breaded fried chicken prepared daily, and a variety of burgers and wraps. </span><br><a style="color:rgb(17, 85, 204);display:inline;background-color:transparent;" target="_blank" href="https://www.chickentreat.com.au/"><u>https://www.chickentreat.com.au/</u></a><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Domino’s</b></span><br><span style="color:rgb(0, 0, 0);background-color:transparent;">Domino's Pizza Enterprises Limited (DPE) is the largest pizza chain in Australia, both in terms of network store numbers and sales. Established in 1983, DPE holds the master franchise rights for the Domino's brand in multiple countries, including Australia, New Zealand, and several European and Asian nations. The company operates over 3,800 stores globally, offering a diverse menu that includes premium and traditional pizzas, sides, and desserts. </span><br><a style="color:rgb(17, 85, 204);display:inline;background-color:transparent;" target="_blank" href="https://www.dominos.com.au/"><u>https://www.dominos.com.au/</u></a><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Ultra Tune</b></span><br><span style="color:rgb(0, 0, 0);background-color:transparent;">Ultra Tune is a 100% Australian-owned automotive servicing and repair franchise established in 1979 with its first center in Box Hill, Victoria. The company specializes in maintaining and servicing a wide range of vehicle makes and models, offering services such as manufacturer's handbook servicing, engine tuning, air-conditioning servicing, and general repairs. As of recent reports, Ultra Tune operates over 270 service centers across Australia.</span><br><a style="color:rgb(17, 85, 204);display:inline;background-color:transparent;" target="_blank" href="https://www.ultratune.com.au/"><u>https://www.ultratune.com.au/</u></a><br>
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<br><p style=" padding-left:5.4pt;margin-inline-start:0pt;"><span style="color:rgb(0, 0, 0);background-color:transparent;">According to agent all leases are retail leases with management fees not recoverable. Copies of the leases will be provided upon exchange of contract.</span></p>
Additional Financial Information FileInitial Term:
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1 Fortyn Ct, Mahomets Flats: Metro Petroleum - 346m2 - $959m2 ($331,866pa net) (4 pumps) Hungry Jacks - 375m2 - $300/m2 Chicken Treat - 144m2 - $810/m2 Dominos - 108m2 - $325/m2 Ultra Tune - 270m2 - $225/m2 (lease being finalized) Rental Comparable: Regional Service Stations: 2 Tamala Lane, Yanchep - 7-11 - 247m2 - $1,443 ($356,500pa net) (4 pumps) 72 Bashford Street, Jurien Bay - Metro Petroleum - 300m2 - $1,071/m2 ($321,360pa net) (4 pumps) 269 York Street, Albany - Ampol - 138m2 - $1,087/m2 ($150,000) (4 pumps) 8D Picton Road, East Bunbury - 7-11 - 190m2 - $1,859/m2 ($353,290pa net) (3 pumps) Fast Food Chains: 8 Birak Lane, Vasse - 179m2 - $838/m2 (Hungry Jacks) 470 Warnbro Sound Ave, Port Kennedy - 252m2 - $794/m2 (Hungry Jacks) 25 Norton Promenade, Dalyellup - 280m2 - $778/m2 (Hungry Jacks) 20 Tama Lane, Yanchep - 273m2 - $769/m2 (Hungry Jacks) 201 First Street, Wonthella - 120m2 - $508/m2 (Domino’s) 52 Thundelarra Drive, Golden Bay - 105.70m2 - $557/m2 (Domino’s) 8 Birak Lane, Vasse - 66m2 - $982/m2 (Coffee Heads) 25/639 Beach Road, Warwick - 182m2 - $1,121/m2 (McDonald’s) 370 Victoria Road, Malaga -219m2 - $731/m2 (KFC)
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<span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Purchase Price: </b></span><span style="color:rgb(0, 0, 0);background-color:transparent;">$10,200,000 (negotiated)</span><br><p style="background-color:transparent;"><br></p><p style="background-color:transparent;"><br></p><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Market Status:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> Off-Market</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Current Base Rent:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> $707,471pa + Outg + GST (excl mng) (includes 1-year Rental Guarantee & Outgoings Cover by seller for 202sqm of vacant space)</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Less Non-Recoverable Costs:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> $35,373pa + GST</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Current Net Rent:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> $672,098pa + Outg + GST (incl mng)</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Current Net Yield:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> 6.59% (incl mng)</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>NLA / GLA / Land:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> 1,099sqm (excl service station)</span><span style="color:rgb(255, 0, 0);background-color:transparent;"> </span><span style="color:rgb(0, 0, 0);background-color:transparent;">/ 3,917sqm / 6,218sqm (freehold)</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Any Additional Areas:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> Public driveways and car-parking not included in leased areas</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>100% Outgoings Recoverable:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> Retail leases, management fees not recoverable (seller will provide leases upon exchange)</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Outgoings (per sqm):</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> $140,113,pa (excl mng) ($36/sqm on GLA)</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Age of Asset:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> Chicken Treat around 2012; remaining buildings in 2020</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Any Incentives in the Leases:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> 3 months rent free for Ultratune (upgrades to façade to suit Ultra Tune specs)</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Are Seller & Tenant Related:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> No</span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Flood Zone:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> No</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Bushfire Zone:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> No</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Contamination:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> No</span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Asset Composition: </b></span><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">6,218sqm Freehold</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">3-sided access - 287m of street front</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">Total of 3,917sqm of GLA</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">4 detached dwellings</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">ample public parking on-site</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">Unit 1 - 1,757sqm (Metro Petroleum)</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">Unit 2 - 883sqm (Hungry Jacks)</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">Unit 3 - 697sqm (Chicken Treat)</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">Unit 4 - 392sqm (Vacant 122sqm, Ultratune will occupy 270sqm, lease currently being finalized)</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">Unit 5 - 108sqm (Domino’s)</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">Unit 6 - 80sqm (Vacant)</span></p></li></ul><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Infrastructure Level:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> Regional</span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Tenant Highlights:</b></span><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">Tenants: Metro Petroleum, Hungry Jacks, Chicken Treat, Ultratune, Domino’s, 202sqm Vacant</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">Annual increases 3%</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">WALE 7+ years</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">Retail leases - management fees not recoverable</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">Securities TBC (copy of leases will be provided upon exchange of contract)</span></p></li></ul><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Agent Questions:</b></span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Are solar panels transferred to buyer (looks like that's what's on the service station)? </b></span><span style="color:rgb(0, 0, 0);background-color:transparent;">Unsure, Will clarify.</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Are there any incentives in the leases? </b></span><span style="color:rgb(0, 0, 0);background-color:transparent;">Not to my knowledge. Ultra Tune deal will do subject to be finalised. Likely 3 months rent free and upgrades to façade to suit Ultra Tune specs.</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Why is the owner selling? </b></span><span style="color:rgb(0, 0, 0);background-color:transparent;">Reinvestment into new project. End of cycle for fund. Develop and hold model</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Does the property need any maintenance work (anything that will arise from the B&P inspection)? </b></span><span style="color:rgb(0, 0, 0);background-color:transparent;">Not to my knowledge. Can clarify.</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Is the floor area 100% council approved (in case there are add-ons, mezzanine etc)? </b></span><span style="color:rgb(0, 0, 0);background-color:transparent;">All approved to my knowledge.</span>
