Queensland’s second fastest growing region, Ipswich, is rising on the radar of investors, with an uplift in institutional investment in the area highlighting the area’s strengthening appeal.
In a vote of confidence for the growing region, Charter Hall’s Direct Diversified Consumer Staples Fund has secured the North Ipswich Service Centre for $6,535,000– reflecting a yield of 6.27%.
Charter Hall’s Head of Direct Property, Steven Bennett said: “Charter Hall Direct Property has a strong track record of creating institutional grade investment opportunities. This acquisition bolsters our investors exposure to a portfolio of commercial property assets leased by major Australian and international brands with resilient income streams.”
The centre is anchored by a Coles Express Shell service station and combined Brodie’s Chicken drive through. Coles Express has signed a 10-year triple net lease on 188sqm and Brodies Chicken has signed a 10-year net lease on 98sqm.
CBRE’s Millan Narsey, Darren Collins and Joe Tynan negotiated the sale on behalf of Citimark Properties.
“This sale higlights the strengthening confidence from national institutional groups in Ipswich as a key investment location – attracted to the area’s strong growth fundamentals,” Mr Tynan said.
“The favourable characteristics of this asset made it a strategic play for the purchaser, with a 9.4 year WALE and the brand new property being leased to Viva Energy Australia and located in a growing catchment.”
In further evidence of institutional interest in Ipswich, newly launched petrol station property trust, APN Convenience Retail REIT, has purchased the Raceview Convenience Centre for $9.1 million.