ASX-listed HomeCo Daily Needs REIT has bought a Dan Murphy’s-anchored retail property in Geelong, Victoria from Wel.Co for $21.5 million.
The property was situated on a 10,929sqm site in the Geelong suburb of Armstrong Creek and only opened in November last year.
It was approximately 70% leased to Dan Murphy’s, Hungry Jacks and KFC, servicing a main trade area population of 66,000 residents.
The asset represented the second stage of the $1 billion masterplanned Armstrong Creek Town Centre development by Wel.Co.
The REIT acquired the first stage, a Coles-anchored neighbourhood shopping centre, for $55.4 million last year.
Over the past 18 months, more than $140 million of Dan Murphy’s assets have transacted across nine deals, representing the equivalent value to the previous five years from 2015-2020.
Recent Dan Murphy’s transactions include Dan Murphy’s Dickson in ACT, which sold on a yield of 4.25% in November last year, and Dan Murphy’s Bathurst, which sold for $11.2 million at a 4.50% yield last July.
“We are strong advocates of Armstrong Creek and the rapid population growth the area continues to experience,” HomeCo Daily Needs REIT Fund Portfolio Manager Paul Doherty said.
“The 100% leased Dan Murphy’s anchored investment is a great compliment to our brand-new Coles-anchored neighbourhood shopping centre also within the Armstrong Creek Town Centre.’’
Colliers’ Tim McIntosh and Mike Crittenden negotiated the off-market sale.
“The Dan Murphy’s covenant is one of the most highly sought after in the retail investment market, with both institutional and private investors attracted to the continued strong performance, attractive lease tenure and underlying land value in prominent locations,” McIntosh said.