Newmark Property acquires $57M large format retail asset in Brisbane

• Located 1-17 Compton Road, Underwood
• Is a 100% freehold interest, and spans 2.8 hectares
• Occupancy of 99% and WALE of 6.3 years

Newmark Property (ASX: NPR) has announced the acquisition of a 2.8-hectare large format property in Brisbane, Queensland.

Located about half an hour southeast of Brisbane’s CBD, or 20 kilometres, Newmark’s Chris Langford said the property sits along a significant growth corridor:

“The property is a high-quality property that is located on a significant land holding on the corner of two arterial roads in a sizeable catchment area and underpinned by leading national retailers. We believe that this combination of underlying real estate and tenancy mix provides for a high-quality long-term investment,” said Chris Langford, Newmark Capital Joint Managing Director.

The asset comprises four buildings with a combined lettable area of 11,115 square metres, with an occupancy of 99%, WALE of 6.3 years, and average rental increases of 3.1% per annum.

The property is also tenanted by quality national retailers including Officeworks, Supercheap Auto, and Sydney Tools. Newmark also said the tenancy mix is highly defensive with over 80% of lettable area leased to medical uses and leading national retailers.

NPR also said the acquisition will increase its Queensland exposure from 13% to 21%, and increase the NPR portfolio to 9 properties.

Funded via the company’s existing debt facility and expected to be accretive to NPR’s FFO immediately post-settlement, the company said it expects the settlement to occur in early September this year.

Following the $57 million acquisition, Newmark’s total portfolio value will move past $600 million.