- EG purchased the property on behalf of its Private Wealth division
- The sale price represents a 5.5% yield
- Tenanted by Coles Group and Queensland Venture Co. in a joint venture
EG Funds Management has announced the acquisition of the Redcliffe Tavern and First Choice Liquor Superstore for $19.29 million.
EG purchased the assets on behalf of its Private Wealth division, with the sale price reflecting a 5.5% per annum yield. The property is located adjacent to the Bluewater Square Shopping Centre, which is around 38 kilometres north of Brisbane’s CBD.
Liquorland (Qld) Pty Ltd, a division of the Coles Group, currently leases the property on a 20-year lease ending in 2029. The hotel is one of 88 currently operated by Queensland Venture Co in joint venture with Coles Liquor.
The off-market deal was brokered by Jon Tyson of Savills Australia, who said “demand for single tenant retail assets with quality tenant covenants like the Redcliffe Tavern remains very robust with a continued dearth of supply”.
The sale follows many successful retail investment acquisitions negotiated by Savills which included the Pottsville IGA which was sold for $10.2 million on a 4.6% yield and the Goodna IGA for $10.1 million at a 6% yield.
“The retail asset is located on a prime corner site with a strong tenant backed by two major national organisations, providing a robust income profile,”
Sean Fleming, EG head of Capital Transactions
“EG’s Private Wealth Division is pleased to secure this blue-chip opportunity as our portfolio value grows along with the wealth of our wholesale investors despite a competitive market”, added EG’s head of Private Wealth, Rodney Walt.
