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Sentinel Property Group has purchased a homemaker centre just north of Newcastle for a cool $23.3 million.
Anchored by Bunnings, the centre is in a high exposure location with Pacific Highway frontage at Heatherbrae.
This facility will be the third addition to the Sentinel Homemaker Trust, which also includes City West Plaza at Sunshine in Victoria and the Geraldton Homemaker Centre in Western Australia.
Bunnings took over the Heatherbrae tenancy last year from its failed former rival Masters. The home-improvement retailers occupy 77 per cent of the property and generates 66 per cent of the centre's passing income.
Other tenants at the 4.57ha site include BCF and PETstock.
The Heatherbrae complex, which is in the Port Stephens local government area close to Newcastle Airport, enjoys a weighted average lease expiry (WALE) of 3.65 years, with a passing yield of 7.94 per cent and passing income of approximately $1,849,534 per annum.
This is Sentinel's third acquisition in the Hunter region, with the company also owning an industrial facility at Mayfield and an office building in Argyle Street in the Newcastle CBD.
Sentinel managing director Warren Ebert says Sentinel is excited about the potential in Newcastle with the city undergoing major renewal with infrastructure projects such as the light rail, the new CBD University of Newcastle campus and also the Hunter region's proximity to Sydney all major attractions.
"I think Newcastle has a fantastic future and we like to buy in locations that mainstream investors aren't targeting," he said.
"A recent commitment from the Port of Newcastle to develop a world-class container terminal will also help boost jobs and business opportunities in the Hunter region."
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