 Asset Class: | Multi-Tenanted |
 Price: | $ 5828000 |
 Net Yield: | 6.20 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
Presenting a strong performing off-market retail and child care centre investment opportunity anchored by a 699 m2 Foodworks Supermarket and 1,603 m2 Goodstart Early Leaning Centre. The centre is further supported by a vet clinic, bakery, dance centre and a ATM. <br><br>The centre features a combined 222 m* <span style="margin-inline-start:0cm;">frontage across three streets and comes with 52 car parking spaces. </span>The asset comprises a total land area of 5,824 m2 and a net lettable area of 2,751 m2. More than 50% of the tenants<br>occupying the centre for over 18 years, these are the testament to the property’s 4.5-year WALE. <br><br>There are a number of under rented tenancies, offering a true value-add opportunity and unrivalled leasing potential. Investing in this property offers the chance to generate a robust net income of $361,329 per annum, with annual increases varying between 3% to CPI, depending on the lease agreement. This incredible investment opportunity ensures continuous growth.<br><br><p style="padding-left:0px;"><span style="color:rgb(0, 0, 0);"><b><u>Why we think this is a great Investment: </u></b></span><span style="color:rgb(0, 0, 0);"><u> </u></span></p><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;margin-inline-start:0px;color:rgb(0, 0, 0);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;margin-inline-start:0px;">Longstanding tenants and long WALE - Offers security</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;">Anchored by Foodworks and Goodstart Early Learning - Both seems to be extremely under-rented - $167 Per Sqm and only $2,500 Per Place </span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;">Ideal location on Wood Street, connecting </span><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;padding-left:0px;">Warwick</span><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;"> town centre to the Cunningham Highway, carrying 10,713+ vehicles daily</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;">Genuine value-add potential via vacant pad-site</span></p></li></ul><br><p style="padding-left:0px;"><span style="color:rgb(36, 36, 36);font-style:inherit;"><b><u>Value-Add Potential </u></b></span></p><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Warwick historically have pretty low vacancy rate </span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">We spoke to couple of valuers who advised most retail lease deals recently struck were around $250 - $300/sqm</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);padding-left:0px;font-weight:normal;font-style:normal;">Considering the market rent at only at $250 Per Sqm, this will increase the net income to $451,071 (Just by increasing the rents for Foodworks and Dance Studio)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="list-style-position:inherit;list-style-type:inherit;display:inline;"><span style="color:rgb(51, 51, 51);padding-left:0px;font-weight:normal;font-style:normal;">Potential Net Yield: 7.7%*</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="list-style-position:inherit;list-style-type:inherit;display:inline;"><span style="color:rgb(51, 51, 51);padding-left:0px;font-weight:normal;font-style:normal;">Potential Value of the Property at the Market Review: $6,939,553 (Considering the cap rate of 6.5% for a similar type of an assest)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="list-style-position:inherit;list-style-type:inherit;display:inline;"><span style="color:rgb(51, 51, 51);padding-left:0px;font-weight:normal;font-style:normal;">Potential Value-Add at the Option: Circa $1.1 million * </span></p></li></ul>
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?
Warwick, located in the Southern Downs Regional Council area of south-east Queensland, is approximately 160 kilometres southwest of Brisbane. The region, known for its agricultural focus, has a population of around <br>50,192 in the Main Trade Area (MTA). Warwick's MTA features a family-oriented population with a high home ownership rate of 73.2%. The town's housing market, with a median price of $379,000, and median household <br>income of $72,671, provides strong purchasing power due to the lower cost of living compared to metropolitan areas. <br> <br>Economically, the MTA demonstrates growth in large format retail/homemaker retail spending, estimated at $190.4 million and projected to reach $289.8 million by 2041, with an average annual growth rate of 2.4%. <br> <br>Warwick is celebrated for its historical charm, agricultural activities, and cultural attractions, including the Warwick Rodeo. The town is home to educational institutions, such as primary and secondary schools and the <br>University of Southern Queensland's Warwick Campus. Easily accessible through the New England Highway, Warwick is an integral part of the Southern Downs Region, governed by the Southern Downs Regional Council. <br><br>
Additional Location Information File<ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);font-weight:bold;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Foodworks - Tenants since last 25 years </b></span></p></li></ul><br>Website: <a style="display:inline;" target="_blank" href="https://www.foodworks.com.au/"><u>FoodWorks Supermarkets</u></a><span></span><br><span style="margin-inline-start:0cm;">Australia’s second largest independent supermarket chain with $1.35 billion in annual sales</span><br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);font-weight:bold;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Goodstart Early Learning - </b></span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Tenants since last 18 years </b></span></p></li></ul><br><span style="color:rgb(51, 51, 51);">Website: </span><a style="display:inline;" target="_blank" href="https://www.goodstart.org.au/"><u>Goodstart Early Learning - Find Quality Child Care and Kindergarten Near You | Goodstart</u></a><span></span><br><span style="color:rgb(31, 31, 31);">Goodstart Early Learning is Australia's largest early learning provider. Formed in 2010 by a syndicate of charities, Goodstart is a not-for-profit organisation that currently has 649 child care centres around Australia. </span><br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);font-weight:bold;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Westside Bakery - </b></span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Tenants since last 5 years </b></span></p></li></ul><br><span style="color:rgb(51, 51, 51);"><b>Website: </b></span><a style="display:inline;font-weight:normal;" target="_blank" href="https://www.facebook.com/westsidehotbread"><u>Westside Hotbread | Warwick QLD | Facebook</u></a><span style="font-weight:normal;"></span><br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>The Dance Centre - </b></span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Tenants since last 7 years </b></span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);font-weight:bold;"><p style="display:inline;"><span style="color:rgb(31, 31, 31);font-style:normal;"><b>Warwick West Veterinary Clinic </b></span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>- Tenants since last 2 years </b></span></p></li></ul>
Initial Term:
Security:
Security Info:
Please see the attached financials <br><br><b>Notes: </b><br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Rethink Investing has deducted extra $17,500 from the presented net income as a buffer - Net Income: $361,329</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">The Dance Centre (Lease expiring June 2025) has confirmed they will be staying </span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">ATM (Lease expiring June 2025) has confirmed they will be staying - We have requested clarification from the Vendor’s solicitors if this will be for 5 years or on month-month holdover</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Childcare Occupancy is 90%+</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(0, 0, 0);font-style:inherit;font-weight:normal;padding-left:0px;">Dance Studio is related to the owner</span></p></li><li style="list-style-image:none;margin-inline-start:0cm;color:rgb(0, 0, 0);"><p style="display:inline;"><span style="color:rgb(0, 0, 0);font-style:inherit;font-weight:normal;padding-left:0px;">Hugely under rented leases (* To be clarified during the due dilligence) </span></p></li></ul>
Additional Financial Information FileInitial Term:
Security:
Security Info:
Subject Property (Compared to market data the property is very under rented - Future Uplift*): Foodworks: $167 The Dance Centre: $103 Westside Bakery: $243 2-2 /74-80 Albion Street Warwick - 498 m2 - $286/sqm 2-1 /74-80 Albion Street Warwick - 799 m2 - $260/sqm 1-1 /74-80 Albion Street Warwick - 166 m2 - $789/sqm 69a Albion Street Warwick – 301 sqm - $480/sqm 62 Fitzroy Street Warwick – 880m2 - $225/m2 69a Albion Street Warwick – 301m2 - $480/m2 * to be clarified during the due diligence
Offer To Purchase:
$
Initial Deposit:
$
Due Diligence:
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Finance:
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Settlement:
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<ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">100% leased Retail & Childcare investment boasting renewed net leases and an impressive 4.5 year WALE</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">High performing & well-maintained centre with longstanding tenants up to 25+ years</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Secure income growth profile – Net Leases with CPI and Fixed 3% annual rent increases</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Goodstart Early Learning – Australia’s largest early learning provider across 654+ locations, 2023 revenue of $1.3Bn*</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Foodworks - Australia’s second largest independent supermarket chain with $1.35 billion in annual sales</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Substantial 5,824 sqm corner site with 52 carparks & 222m of frontage across three streets</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);font-weight:bold;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Genuine value-add potential via 760m* vacant pad-site, plus significant rental uplift available</b></span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Strong Trading Childcare Centre – 250m* to Warwick’s largest primary school (558 students) plus 7 further schools within 3km*</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Ideal location on Wood Street, connecting Warwick town centre to the Cunningham Highway, carrying 10,713+ vehicles daily</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Warwick – Key residential, freight and services hub of the Darling Downs region, part of a thriving $20.7 billion economy and boasting a globally significant agricultural industry</span></p></li></ul>
