Sentinel Group Australia has extended its fast growing footprint in regional Queensland with the $28 million purchase of a Coles Moranbah – a neighbourhood shopping centre anchored in the mining town.
The Moranbah Fair Shopping Centre, which provides a key piece of social infrastructure and amenity for the coal mining region, will be added to the Sentinel Diversified Investment Trust, which includes the commercial complex The Hub @ Greenfields in Mackay.
The purchase from Elanor Investors Group represented a yield of 8.47 per cent with the transaction negotiated by Sam Hatcher and Jacob Swan from JLL.
The 7,058 sqm shopping centre site includes a freestanding KFC pad site and is supported by 16 specialty shops including Telstra, The Reject Shop, TSG, Priceline Pharmacy and Anglo American.
“Moranbah is a key town in the Isaac Region in central Queensland with a growing economy associated with essential commodities such as mining and agriculture,” Mr Ebert said.
“The gross regional product has increased by approximately 120 per cent since 2015, compared to 13 per cent for Queensland and 10 per cent for Australia over the same period.
“The Isaac Region is underpinned by approximately 24 operational mines, producing 42 per cent of Queensland’s saleable coal. The recently approved $1 billion Olives Down coal mine project is located approximately 40km south of Moranbah and will create more than 1,500 local jobs, generating more than $8 billion to the local economy and more than $10 billion to Queensland’s economy.”
Mr Ebert said Moranbah Fair is the only full-line supermarket within approximately 160km.
“Coles has a 15-year lease in Moranbah Fair which expires in 2028, with two five-year options,” Mr Ebert said.
“National tenants represent more than 70 per cent of gross passing income with strong WALE by income of five years and a low vacancy rate of 2.6 per cent with strong leasing interest on the vacancies. ”
Established in 2010, Brisbane-based Sentinel has a national portfolio of more than 55 retail, industrial, office, land, tourism infrastructure and agribusiness assets with a total value in excess of $1.2 billion.