RWC Northern Corridor Group 22-28 Rowe Street, Caboolture QLD
Chris Massie Director 0412 490 840
chris massie@raywhite com
Troy Sturgess Senior Agent 0432 701 600
troy sturgess@raywhite com
This Asset at a Glance
Property Address 22-28 Rowe Street, Caboolture
Legal Description Lot 9 on RP226501
Land area 3,221m2
Building area 1,167m2
Tenancies 11
Zoning Neighbourhood Hub
Local Authority Moreton Bay City Council
Anchor Tenants Friendly Grocers, Pizza Hut
Net Income P/A $491,450.30
WALE 5 93 years
National anchor tenant
Property Features
Multi tenanted for continuity of income
Prominent corner location
The multi-tenanted, multi-titled nature of this property is what attracts me the most Those who are risk averse should find comfort in this
With single tenant investments your income can drop to zero, but the multiple tenants in this property mean losing one tenant likely doesn’t impact your ability to cover outgoings and bank repayment obligations
Agent Insights
A single tenant sounds good in theory but the peace-of-mind that comes from this multi-tenanted, multi-titled flexibility cannot be
Why We Like This Property
We have prepared the following summary of key observations on this particular property, based on what we know about the national market trends and local market drivers,
Tenant Security & Mix
Rent vs Market & Tenant Demand
Lease Structure & WALE
This is a true “Convenience Retail” centre, with a perfect mix of food (both eat in and take away) and personal services, anchored by a long term, nationally branded retailer. This type of tenancy mix proved to be a bullet-proof combination through COVID
The rise of UberEats in recent year has further bolstered the strength of convenience retail restaurants, especially in areas with younger demographics such as this student-heavy TAFE and Uni precinct.
All rents are under $550m2, with most in the mid $400m2 range.
The fact Pizza Hut are willing to pay the highest rate of $545m2 on a ten year lease with 4% fixed reviews confirms rents are comfortably in line with or under market rates
The weighted average lease expiry (WALE) is close to six years, but more importantly, there is a wide spread of lease expiry dates across the next ten years. This ensures continuity of income throughout the life of your investment
The Nett nature of the lease structures, combined with the CPI reviews across most of the tenancies means the ongoing true nett return is quite predictable and not impacted by rapid shifts in outgoings or general market escalations.
Replacement Cost & Capital Growth Potential
Outgoings, Maintenance & Management
If someone was to buy land and build a competing complex nearby, they would likely need to achieve rent rates 20% higher than those being achieved in this centre to make the project feasible This ensures capital growth through comparable rental market reviews and tenant demand for affordable alternatives.
The investment should prove to be a relatively low maintenance property, in spite of its age. Tenants are responsible for their internal fit out maintenance and the single-story brick construction normally proves robust It will be beneficial to stay pro-active in your your approach to maintenance obligations for both you and your tenants. This serves to prolong the life expectancy of key infrastructure. Alternatively, our property management team can manage these items the cost of which is recoverable from the tenants
Summary
Our recommended strategy if you were to buy this property will be to enjoy the consistent income from day one and be ready to make the most of the well spaced out market reviews over the next five years. Pizza hut’s impressive fit out and new ten year lease have set a benchmark for rent and quality for this centre We know that all existing businesses are benefiting and others will jump at any opportunity to service this growing demographic.
Talk to us today about how this property could serve your investment needs.
Regards,
Chris Massie Director
0412 490 840 chris.massie@raywhite.com
Troy Sturgess Senior Agent
0432 701 600 troy.sturgess@raywhite.com
Disclaimer
1 The information contained in this Strategic Analysis and any other verbal or written information given in respect of the property (“Information”) is provided to the recipient (“you”) on the following conditions:
2 North Coast Commercial Properties Pty Ltd, trading as Ray White Northern Corridor Group and or any of its officers, employees or consultants (“we, us”) make no representation, warranty or guarantee that the Information, whether or not in writing, is complete, accurate or balanced. Some information has been obtained from third parties and has not been independently verified. Accordingly, no warranty, representation or undertaking, whether express or implied, is made, and no responsibility is accepted by us as to the accuracy of any part of this or any further information supplied by or on our behalf, whether orally or in writing.
3. All visual images (including but not limited to plans, photographs, specifications, and artist impressions) are indicative only and are subject to change. Any measurement noted is indicative and not to scale. All outlines on photographs are indicative only.
4.The Information does not constitute, and should not be considered as, a recommendation in relation to the purchase of the property or a solicitation or offer to sell the property or a contract of sale for the property.
5.You should satisfy yourself as to the accuracy and completeness of the Information through your own inspections, surveys, enquiries, and searches by your own independent consultants, and we recommend that you obtain independent legal, financial and taxation advice. This includes as to whether any listing price is inclusive or exclusive of GST.
6 We are not valuers and make no comment as to value “Sold/leased” designations show only that stock is “currently not available” – not that the property is contracted/ settled If you require a valuation, we recommend that you obtain advice from a registered valuer
7 The Information does not and will not form part of any contract of sale for the property If an interested party makes an offer or signs a contract for the property, the only information, representations and warranties upon which you will be entitled to rely will be as expressly set out in such a contract
8 Interested parties will be responsible for meeting their own costs of participating in the sale process for the property We will not be liable to compensate any intending purchasers for any costs or expenses incurred in reviewing, investigating or analysing any Information
9 We will not be liable to you (to the full extent permitted by law) for any liabilities, costs or expenses incurred in connection with the Information or subsequent sale of the property whatsoever, whether the loss or damage arises in connection with any negligence, default or lack of care on our part
10. No person is authorised to give information other than the Information in this Information Memorandum or in another brochure or document authorised by us. Any statement or representation by an officer, agent, supplier, customer, relative or employee of the vendor will not be binding on the vendor or us
11.To the extent that any of the above paragraphs may be construed as being a contravention of any law of the State or the Commonwealth, such paragraphs should be read down, severed, or both as the case may require, and the remaining paragraphs shall continue to have full force and effect.
12.You may not discuss the Information or the proposed sale of the property with the vendors or with any agent, friend, associate or relative of the vendor or any other person connected with the vendor without our prior written consent. We accept no responsibility or liability to any other party who might use or rely upon this report in whole or part of its contents.
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