Two New Acquisitions
Document date:
Wed 28 July 1999
Published:
Wed 28 July 1999 00:00:00
Document No:
187818
Document part:
B
Market Flag:
Y
Classification:
SCHRODERS PROPERTY FUND 1999-07-28 ASX-SIGNAL-G
HOMEX - Sydney
+++++++++++++++++++++++++
STONEY RANGE BULKY GOODS CENTRE
LAKE ENTRANCE ROAD, SHELLHARBOUR NSW
DESCRIPTION
Schroders Property Fund has purchased the constructed and leased
buildings making up the first stage of the Stoney Range bulky goods
centre for $19.35 million at a 9.0% yield. As the stage 2 and 3
buildings are constructed and 0
let, they will also be purchased by the
Fund at a 9.0% yield. This is expected to be in December 1999 at a
total cost of $7.55 million.
The acquisition of Stage 1 simultaneously exchanged and settled on
28 July 1999 (purchase price $19.35 million). Stages 2 and 3 of the
estate exchanged on the same day with settlement due by the end of
1999 (purchase price $7.55 million). An option over additional land
for Stage 4 has also been secured, subject to suitable tenants bein0
g
secured by the vendor within 18 months.
On completion of Stage 2 and 3, the estate will comprise 13
freestanding buildings leased to 14 separate retailers. Eight of
these buildings are currently occupied and trading, and a further
building is constructed with a lease agreement pending. Three other
buildings are leased and under construction. The two final units
are yet to be constructed with lease negotiations continuing.
The size of Stage 1 freestanding retail o0
utlets ranges from 200 to
7,800 sqm and tenants include BBC Hardware, Paint and Paper,
Woolworths Supermarket, Woolworths Plus Petrol, Retravision, Bob
Jane, Repco and Burger King.
LOCATION
The property is situated on the south eastern side of Lake Entrance
Road, 500 metres from the Fund's Shellharbour Square investment.
Lake Entrance Road is a major arterial linking the Shellharbour town
centre with Princes Highway to the south and to Warilla, Warrawong
and Wollong0
ong to the north.
SCHRODERS PROPERTY FUND AND THE SHELLHARBOUR AREA
The Stoney Range centre is approximately 500 metres from the Fund's
existing Shellharbour Square asset. This acquisition gives the Fund
an excellent opportunity to consolidate its investments in
Shellharbour, a region it is committed to in the long term.
Shellharbour Square was purchased by the Fund in May 1993. It was
expanded to a regional centre in 1998 to a total area of 36,280 sqm.
The centre i0
s anchored by Target, Coles, Kmart and Franklins Fresh
and includes 133 speciality stores, a 300-seat foodcourt and 2,100
car spaces. The centre is differentiated from its competition by
the inclusion of the only Target and Franklins Fresh in the region.
Since redevelopment the centre has achieved 100% occupancy and
strong sales growth, reaching $156 million per annum to July 199 -
33/1% up on the previous 12 month period. Pedestrian traffic also
increased by 30.5% o0
n last year.
DEMOGRAPHIC PROFILE
The Fund's Shellharbour investments are located in the City of
Shellharbour, which has an estimated population of 55,900 people.
Between 1991 and 1996 the population increased at a rate of 2.4% per
annum. While this slowed to a rate of around 1.6% in 1997/98, it is
still notably higher than for the City of Wollongong (0.8%) or New
South Wales as a whole (1.1%) over the same period (KPMG Population
Growth 10th edition 1999)
Our resea0
rch indicates that the centre's primary trade area
encompasses the suburbs of Shellharbour, Warilla, Blackbutt, Oak
Flats and Albion park accounting for some 64% of shoppers.
Our research also shows that a favourable 34% of Shellharbour
Square's shoppers are couples with dependent children, predominantly
young families with children under five years of age. An
additional 22% of the centre's shoppers are aged 50 years or over.
MORE TO FOLLOW
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