02/07/2021 - 08:00

Acure sells Baldivis asset for $49m

02/07/2021 - 08:00

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Acure Asset Management has made a tidy sum after selling its large-format retail property in Baldivis for almost $20 million more than it paid in 2015.

The property has a gross-lettable-area of 15,443sqm and is leased by Bunnings and Petstock.

Acure Asset Management has made a tidy sum after selling its large-format retail property in Baldivis for almost $20 million more than it paid in 2015.

The Australian real estate funds management group sold its property on the corner of Safety Bay Road and Baldivis Road to ASX-listed property funds manager Charter Hall for $49 million.

Acure paid $29.25 million for the 34,000 square metre landholding in 2015.

The property has a gross lettable area of 15,443sqm and is home to two long-term established tenants: Bunnings Baldivis and Petstock.

Acure managing director Angelo Del Borrello said the company’s investors had been pleased with the outcome, with investor internal rate of return equating 17.6 per cent per annum.

“This journey was not without challenge, as when we purchased the property back in 2015 via our Hammersley Unit Trust, it was originally a Masters Home Improvement site, and that business exited the market late in 2016,” Mr Del Borrello said.

“The culmination of this sale speaks to many things, but importantly our ability as an asset manager to navigate the challenges that can arise in the commercial leasing space.

“When Masters exited the Market, we were able to negotiate a new lease agreement with Bunnings to come into the space, which was absolutely critical for our investors.”

Savills WA associate director commercial and retail sales Barney Dear facilitated the off-market transaction, selling the property on a 4.52 per cent passing yield, which he said had garnered a record yield for Western Australia. 

“Generally, we are seeing significant investor appetite for long weighted-average-lease- expiry retail assets in WA and nationally” he said.

Acure’s WA portfolio spans commercial and retail property, particularly across WA’s regions, including the Newman Hotel and the Outback Port Hedland.

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