Bondi Retail, Supermarket & Childcare Centres headline Stonebridge May Portfolio

Stonebridge National Investment Sales has launched their highly anticipated May Portfolio. Comprising 15 quality investments across the eastern seaboard, the assets are spread across sought after segments including supermarkets, fast food, childcare, retail, tyre & auto and fuel & convenience retail. Each of the offerings provide ultimate security, with leases in place to household names such as ALDI, Caltex, Guzman Y Gomez, Aesop, BP plus successful national childcare operators including Eden Academy.

Leading the Portfolio is a rare opportunity for investors to own a ‘piece’ of Sydney’s Bondi Beach, by way of 12 individual retail investments. Positioned at the heart of Sydney’s food, lifestyle and fashion mecca, the assets are situated within the high performing ‘Beach House Lane’ mixed-use precinct, boasting triple street frontage to Campbell Parade and Gould Street. The ‘entry level’ retail offerings hold leases to complementary lifestyle tenants, with values spanning from $1.5m to $5m+.

Catering to continued demand for premium fast food investments, a brand new Guzman y Gomez freehold at Wollongong, 90 minutes south of Sydney, is being offered with a rare, first-to-market 20 year lease term. Occupying a prominent corner position on Warrawong’s key retail thoroughfare of King Street, the property is nearby major retailers including Coles, Woolworths, ALDI and McDonald’s, providing commencing net income of $300,000 p.a.

Another trophy offering is a full-line supermarket bordering Melbourne’s CBD. The brand new Aldi supermarket carries a 14 year lease through to 2037 and is located within a brand new 195-apartment mixed use development. Attractive CPI increases and strong depreciation benefits further underpin the defensive nature of the investment.

Stonebridge’s May portfolio contains four premium childcare centre investments, with three Brisbane based centres set to attract significant national attention. Each of the Qld based facilities offer brand new improvements, long term 15 and 20 year net lease terms, plus strategic metropolitan positions nearby schools, key arterials and employment nodes. Further south in Melbourne, a modern facility on a premium 10,071sqm site is for sale. The centre is situated in the booming growth precinct of Melton, Victoria’s second fastest growing area, with a 15 year net lease through to 2033 in place to a highly experienced multi- centre operator.

Desirable fuel & convenience retail assets are also set to rev up the May portfolio, with four investments underpinned by large landholdings and blue chip tenant covenants available. Headlining the offerings are a modern Caltex asset on the New England Highway at Rutherford, in the booming Hunter Region of NSW, and a newly rebuilt Viva Energy on Gympie Road at Lawnton, 20km north of Brisbane’s CBD and set across an irreplaceable 5,553 sqm landholding. In Colac, Victoria, BP has committed to a new 12 year lease across a huge 40,000 sqm convenience retail and truck stop site.

Additional premium assets within the portfolio include a longstanding tyre & auto asset at Tweed Heads in NSW leased to Auto Masters and a high profile Camberwell strip retail property located in the attractive Burke Road precinct.

Commenting on the Portfolio launch, Stonebridge Partner, Tom Moreland said “Our May collection of 15 premium investments offers something for all investors, from rare Bondi Beach assets priced from $1.5m, through to larger childcare centres and supermarket offerings toward $15 million. The market for long term leased investments, particularly those within resilient and non-discretionary industries, remains strong and highly resilient to recent economic headwinds. Deep pools of private capital continue to seek quality commercial real estate and as such, we expect huge national interest in the new portfolio offerings.”

Kevin Tong, Stonebridge Asia Practice Partner, noted “We continue to receive heightened level of enquiry from Asian buyers, particularly for leased investments such as those within our latest portfolio. Quality, income producing assets with favourable funding terms from the banks are providing “newer” Asian investors and syndicates with superior confidence than other investment vehicles, which we have witnessed firsthand through the first quarter of 2023, particularly since international travel from China re-opened.”

Stonebridge’s May National Portfolio Auction and respective Expressions of Interest campaigns close on Wednesday 3 May 2023.