RWC Bayside - 401-409 Main Road, Wellington Point - IM - Feb 2024

Executive summary

ADDRESS

401-409 Main Road, Wellington Point QLD 4160

THE PROPERTY

Situated in the Bayside suburb of Wellington Point on the prominent Main Road retail strip, this property enjoys loyal patronage driven by its successful and diverse mix of tenants and high exposure to an active village community.

LAND AREA

2,218m²* high-profile site with expansive 40m* street frontage

OCCUPANCY STATUS

716m²* NLA across eight shopfronts split into five tenancies. Currently occupied by four quality long-term tenants on solid leases, and one vacant tenancy of 81m²*.

METHOD OF SALE

Expressions of Interest closing Wednesday 27th March 2024, 4pm (AEST).

MARKETING AGENTS

RWC Bayside

1/76 Old Cleveland Road, Capalaba Qld 4157 07 3245 7199

Nathan Moore

Director

0413 879 428

nathan.moore@raywhite.com

* Approximately

Property overview

Local Authority

Zoning

Property Description

The Opportunity

Redland City Council

Local Centre

401-409 Main Road comprises a purpose-built 716m²* single-level professional/retail building set on a high profile 2,218m²* lot, strategically positioned along the bustling high street of Wellington Point. The expansive frontage exceeds 40m, ensuring excellent visibility and accessibility.

The property features a large on-grade car park, enhancing customer convenience.

Offered as a genuine investment opportunity with a current passing nett income of $259,495.64^, the property is being offered for sale with one vacancy providing a buyer with the opportunity to either occupy the vacancy or lease to a new tenant. Based on market rental we expect the fully leased centre to generate a nett income of $301,866.75^

The land-rich site provides an opportunity for the future redevelopment of the property. The current ‘Local Centre’ zoning allows for a mixed-use development to a maximum of 3 storeys.

This property offers an enticing blend of stable passive income and significant future upside, making it an ideal investment opportunity for astute investors seeking both immediate returns and long-term growth.

Sales process

EXPRESSION OF INTEREST

The property is for sale by Expression of Interest closing Wednesday 27th March 2024, 4pm (AEST). Parties wishing to make an offer may do so by completing the EOI Form in the Annexure of this document and sending to:

By delivery: RWC Bayside

1/76 Old Cleveland Road Capalaba Qld 4157

By email: nathan.moore@raywhite.com

EOI TERMS

The seller retains the right (in their absolute discretion) to:

• decline to consider and/or accept any expression of interest lodged in response to this invitation

• negotiate directly with any party who has lodged an expression of interest at any stage

• accept or decline a non-conforming expression of interest at any stage of the sale process

• enter into any agreement for sale of the property on such terms as are acceptable to the sellers discretion

• change this invitation

• require additional information from a party who has lodged an expression of interest

• reject all or any offers at any time for any reason

• withdraw the property from sale.

INSPECTIONS

Inspections are by appointment only for genuine parties. Please contact Nathan Moore at RWC Bayside on 0413 879 428 or via email: nathan.moore@raywhite.com to arrange a suitable time.

DUE DILIGENCE

Prospective Buyers should conduct due diligence investigations of the property at their own expense and risk in all things (including, but not limited to outgoings, rates, land tax, zoning, etc). The Vendor does not warrant the validity of any information provided or accept any risk or liability in that regard. Any consent given by the Vendor to allow prospective purchasers to conduct the aforementioned due diligence activities should not in any circumstances be construed as an acceptance that the Vendor will be exercising or engaging its rights to deal with the property in any way or form with the prospective Buyer.

Location map

Suburb profile

Wellington Point is situated on the bayside peninsula approximately 22km south east of Brisbane City, within the boundary of Redland City Council. The affluent suburb accommodates almost 12,700 people consisting of 3,735 families attracted by its lifestyle and dining precinct. The residents of Wellington Point are predominately professionals, with households earning a median weekly income of $2,197 per week, trending 31.2% above the state median. A third of households in the area enjoy a total median income exceeding $3,000 per week.

Looking ahead to the future, South East Queensland (SEQ) is projected to experience substantial growth, with an additional 1.9 million people expected to reside in the region by 2041, bringing the total population to 5.3 million. To support this growth, ShapingSEQ, released by the Queensland Government, will provide a regional framework to guide development over this timeframe. SEQ is anticipated to require 800,000 new dwellings to accommodate the population expansion, creating almost 950,000 new employment opportunities. Established residential areas with limited land availability will see more sustainable urban planning through a focus on mixed-use and medium density developments to cater for projected population expansion.

Wellington Point is a relatively compact market that primarily features strip retail and traditional high street retail establishments. The area focuses on attracting food and beverage operators, convenience-based shopping, specialty services, boutique retailers, homewares, and lifestyle offerings. Throughout the COVID-19 pandemic, Wellington Point experienced heightened demand due to increased competition fuelled by the low cost of funds. This, combined with limited stock availability, led to record high occupancy rates and average capital value growth. Local private investors were particularly competitive to secure income-producing assets with low risk and steady rental growth, causing yields to consolidate to record lows.

The region witnessed a significant boost in demand from Self-Managed Super Funds (SMSF) during the pandemic. This heightened interest was driven by owner-occupiers seeking refuge from escalating rental rates. Additionally, SMSF activity levels remain firm as the perceived cost of funds is considered sustainable in the long term despite recent interest rate increases.

The current construction activity associated with the Brisbane 2032 Summer Olympics and supporting infrastructure further compounds the supply constraints in the Wellington Point market. The majority of building materials and labour resources are concentrated on this major project, making it challenging for new developments to commence. As a result, the limited availability of properties and restricted new development supply will continue to underpin this market. Commercial and retail assets in Wellington Point remain tightly held, coupled with the scarcity of land and construction constraints, creating a robust environment. This will maintain pressure on demand, vacancy, and rental rates albeit with current inflationary trends.

Over the next decade, the Queensland economy will see a significant boost, due to the 10-year infrastructure plan announced as part of the Federal Budget in 2022. With a commitment of $120 billion to major infrastructure projects nationwide, the Federal Government's focus on improving transport, including roads, freight, and rail, will have a notable impact on the state's development. Queensland stands to benefit the most from this infrastructure investment, with over 20% of the funds dedicated to upgrading rail facilities, particularly along the Sunshine Coast to Brisbane Corridor and introducing rapid rail from Gold Coast to Brisbane. These projects will enhance connectivity, create new employment opportunities, accommodate a growing population, and foster economic growth when completed. As a result of the planned infrastructure projects, SEQ will witness improved connectivity, greater employment prospects, an influx of residents, and increased economic activity. The development of such vital infrastructure will be a catalyst for job growth, expansion of businesses, better transportation systems, and will attract new residents to settle in the SEQ region.

In addition to the infrastructure plan, the upcoming Brisbane 2032 Summer Olympics will further boost investment activity in SEQ. This major event will bring in substantial investments and opportunities, leaving a long-term positive impact on the region's economy. In SEQ, the confluence of infrastructure development and the upcoming Olympics will fuel job creation, stimulate business growth, and attract new residents, solidifying SEQ's position as a strong market in Queensland's economy.

4

Suburb profile

Suburb profile

Outline indicative only

Tenancy schedule

Financial summary

Outgoings budget

Annexure A

Title Search – Lot 1

Annexure A

Title Search – Lot 2

Annexure A

Title Search – Lot 3

Annexure A

Title Search – Lot 4

Annexure B

Asbestos Clearance Certificate

Annexure C

Annexure D

Machinery & Equipment Breakdown CoC

Annexure E

Rate Notice – Lot 1

Annexure E

Rate Notice – Lot 2

Annexure E

Rate Notice – Lot 3

Annexure E

Annexure F

Town Planning (excerpt) Local Centre Zone

The below excerpt represents the current allowable development options for the site should a future redevelopment project be considered.

Annexure G Registered Plans

Annexure G Registered Plans – Level A

Annexure H

Survey Plan – Tenancy F

Annexure H

Survey Plan – Tenancy G

Annexure I

Land Tax

Annexure I

Land Tax

Expression of Interest Form

Annexure J Expression of Interest Form – Page 2 of 2

Expression of Interest Form

PROPOSED BUYER ACKNOWLEDGEMENT

In submitting an Expression of Interest to buy the subject property (“EOI”), the Proposed Buyer agrees to the following conditions:

1. The Proposed Buyer agrees to and accepts all disclaimers, limitations and qualifications in any written or verbal brochure, advertisement, representation, search, advice or information issued by the Vendors or Ray White or anyone on behalf of either of them (“Marketing Material”).

2. The Proposed Buyer acknowledges that the Proposed Buyer has to satisfy itself about the characteristics, value, potential and features of the subject property by relying only on the Buyer’s own enquiries and investigations and not on any Marketing Material. Therefore, neither the Vendors nor Ray White (or their respective employees and agents) will be liable if any Marketing Material is incorrect, incomplete or misleading.

3. The Proposed Buyer accepts and agrees to the terms of the Disclaimer in the Information Memorandum containing this EOI form.

4. The Proposed Buyer agrees that the Vendors will not be obliged to sell the subject property in response to this or any particular EOI.

5. The Vendors may sell the subject property to any person they choose, as a result of the EOI process or otherwise, or not at all. The Proposed Buyer cannot assume or expect that:

• the Vendors will negotiate, or not negotiate, with the Proposed Buyer or any other respondent;

• the Vendors will accept the highest purchase price offered;

• the Vendors will consider any particular feature of an EOI or other proposal to buy the subject property as determinative; or

• the submission of the Proposed Buyer’s EOI will lead to any particular outcome.

6. No claim can be made against the Vendors or Ray White in relation to any costs or expenses incurred by a respondent in evaluating the subject property or submitting an EOI.

7. This EOI constitutes an Expression of Interest by the Proposed Buyer to negotiate for the possible sale and purchase of the subject property.

EXECUTION:

SignedbytheProposedBuyeronly.

Full Name(s):

Signature(s):

Date:

Disclaimer

The information contained in this Information Memorandum and any other verbal or written information given in respect of the property (“Information”) is provided to the recipient (“you”) on the following conditions:

1. Kedmoor Pty Ltd ABN 93 818 763 584 trading as RWC Bayside 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.

2. All visual images (including but not limited to plans, photographs, specifications, 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.

3. 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

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. The Information must not be reproduced, transmitted or otherwise made available to any other person without our prior written consent.