Newmark Capital has entered into an arrangement to acquire the proposed Warragul KMart & Bunnings for $51M.
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The Warragul Property is located in regional Victoria 107 km southeast of Melbourne. It is a highly visible location at the intersection of Hazel Drive and Queen Street. The proposed project will house a Bunnings Warehouse, Kmart Discount Department Store, Reject Shop, Tyre and Auto and additional large format retail. The centre will include parking for 627 on grade cars.
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The property has a site area of 57,230sqm, and is zoned Special Use Zone 5 under the Baw Baw Shire Planning Scheme.
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As part of the deal, Newmark will engage the Troon Group to develop the large format retail centre on a fund through basis. Under the arrangements, Newmark Capital will fund the developer’s construction and development costs up to a specified cap.
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Newmark Capital has secured a $35m land acquisition facility and a $65m construction debt facility with a major Australian bank to fund its requirement to pay the progressive payments of construction and development costs to the third party developer.
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The acqusition will sit within Newmark's Hardware Trust which aims to invest in a diversified portfolio of retail properties that feature leading national retailers such as Bunnings, Kmart, Officeworks and JB Hi-Fi.
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The Trust currently owns Bunnings stores in Launceston, Maroochydore and Lake Haven.