Stonebridge’s first National Portfolio of 2024 features rarely offered Dan Murphy’s

Stonebridge has launched its first national portfolio of 2024, offering 20 quality investments across the popular segments of liquor, supermarkets, childcare, fast food and fuel & convenience retail. Each of the assets are secured by long term leases to ASX listed and national retailers including Dan Murphy’s, IGA, Guzman y Gomez, Woolworths, BWS and Viva Energy, plus established childcare operators.

Leading the portfolio are five premium freestanding Dan Murphy’s and BWS assets located throughout NSW, VIC, SA and WA. Each of the properties occupy strategic retail positions, boast high underlying land and building value and provide brand new 10-year leases to ASX listed Endeavour Group Ltd. The investments range in value from circa $3.5 million to $12 million.

Commenting on the appointment, Stonebridge Partner, Michael Collins said “This particular portfolio represents a key opportunity to acquire trophy freestanding assets that are seldom offered to the market. Dan Murphy’s and BWS are two iconic Australian brands, part of ASX listed Endeavour Group, who enjoy dominant market share of Australia’s retail liquor industry. We expect significant interest from high-net-worth private investors across Australia and Asia Pacific, for what will be a fantastic litmus test of the market to commence 2024”.

Catering to continued demand for fast-food holdings, investors are offered the chance to secure a new Guzman y Gomez outlet at world renowned Bondi Beach. The outlet occupies a high-profile tenancy on the corner of Gould Street and Curlewis Street, with a new 10-year lease through to 2034, plus fixed 3% annual increases and net income of $270,000 p.a.

In Melbourne, a Woolworths supermarket with strong future development potential has been listed in the bayside suburb of Hampton. Set across a significant 3,354 sqm site, high underlying land value underpins much of the asset’s value, together with a net lease to Woolworths which provides excellent income protection for an incoming purchaser.

Another trophy offering is a large format retail asset in the sought after NSW locale of Bowral, leased to K-Mart, a wholly owned subsidiary of ASX listed Wesfarmers. The property encompasses significant built-form, available well below replacement cost and carries a renewed lease with options through to 2033, plus significant rental upside.

Stonebridge’s February portfolio also contains four premium fuel & convenience retail investments. Of note, a high profile 5,271 sqm site in the booming south-west Sydney growth corridor is up for grabs. The Mount Annan property is a longstanding Shell Coles Express outlet leased to ASX listed Viva Energy, who pay rent annually in advance. The holding is one of very few commercially zoned sites in the precinct, neighbouring McDonald’s and Woolworths anchored ‘Mount Annan Central’. In Newcastle, a strategically located freestanding 7-Eleven has also hit the market. The site is positioned on a key arterial near Bunnings Warehouse and is leased through to 2031 with sought after fixed 4% annual rent increases.

Further north, a high yielding convenience retail opportunity is up for grabs in Hatton Vale, 45 minutes west of Brisbane, with a Shell branded truck stop occupying a land rich 7,474 sqm site on the Warrego Highway.

Rounding out the national portfolio are two premium childcare freeholds situated at Narre Warren in metropolitan Melbourne and Terrigal on the NSW Central Coast. Both facilities trade at high occupancy and are leased to experienced private operators committed to long-term 15 year leases.

Commenting on the Portfolio launch, Stonebridge Partner, Tom Moreland commented “Our national team holds a strong outlook for 2024. The macro-economic forecasts are promising for commercial property landlords and investors, driven by a combination of factors including high population growth (driven by an influx of immigration), limited new development-grade supply (increasing the scarcity of quality new assets and driving rental growth), plus the likelihood of interest rate stability and forecast cuts in the second half of the year. We see this as being of key benefit to ‘trophy style’, long term freestanding assets such as those within our first national portfolio.

Stonebridge’s first National Portfolio Auction for 2024 will take place on Wednesday 6 March at 11am, with the respective Expressions of Interest campaigns closing Thursday 7 March at 3pm.