Commercial Street West Fund was established in 2018 as a single-asset wholesale investment for a light industrial retail complex in the heart of Mount Gambier SA.
Throughout the Fund’s six-year period, the underlying tenancies provided investors with a strong blue-chip income stream to deliver average distributions of 10.6% per annum.
NET LETTABLE AREA
10.06%AVG. ANNUAL RETURN
12.43%IRR
6YRFUND TERM
3,232SQMNET LETTABLE AREA
10.06%AVG. ANNUAL RETURN
12.43%IRR
6YRFUND TERM
3,232SQMNET LETTABLE AREA
10.06%AVG. ANNUAL RETURN
12.43%IRR
6YRFUND TERM
3,232SQMNET LETTABLE AREA
10.06%AVG. ANNUAL RETURN
12.43%IRR
6YRFUND TERM
3,232SQMNET LETTABLE AREA
10.06%AVG. ANNUAL RETURN
12.43%IRR
6YRFUND TERM
3,232SQMNET LETTABLE AREA
10.06%AVG. ANNUAL RETURN
12.43%IRR
6YRFUND TERM
3,232SQMNET LETTABLE AREA
10.06%AVG. ANNUAL RETURN
12.43%IRR
6YRFUND TERM
3,232SQMNET LETTABLE AREA
10.06%AVG. ANNUAL RETURN
12.43%IRR
6YRFUND TERM
3,232SQMNET LETTABLE AREA
10.06%AVG. ANNUAL RETURN
12.43%IRR
6YRFUND TERM
3,232SQMNET LETTABLE AREA
10.06%AVG. ANNUAL RETURN
12.43%IRR
6YRFUND TERM
Investors received an average income distribution of 10.06% per annum and realised a total return of 74.55% on their investment, factoring in capital growth.
Three of the six tenants were subsidiaries of ASX-Listed companies in SRG Leisure Retail Pty Ltd trading as BCF, Super Cheap Auto and Petbarn. These three leases provided strong and secure income for investors for the duration of the fund.
The success of the fund was a result of our strategic acquisition, successful repositioning of the asset and opportune divestment.
The Fund's success was underpinned by FRP’s ability to identify undervalued assets with significant growth potential. FRP secured the property in an off-market transaction for $5.5 million, a figure which was recognised to be below market rate at the time.
This acquisition not only provided an attractive entry point but also laid a robust foundation for future value appreciation.
The value of the property was significantly enhanced through strategic asset management. The team successfully negotiated and renewed all tenant leases, including BCF, Supercheap, Petbarn, and F45, for an additional five years. These renewals included positive rent reversions, increasing the property’s rental income.
Additionally, operational efficiencies implemented by the management team further boosted the net income generated by the property.
The decision to sell the asset was carefully planned and executed, taking into account the improved saleability and value of the property, as well as the presence of a competing development site.
FRP engaged national agencies Knight Frank and Burgess Rawson to execute a five-week marketing campaign, culminating in a national auction. The auction attracted numerous bids, ensuring transaction certainty and securing favourable contract terms for the vendor.
Introducing the Brickworks Marketplace Fund, a new wholesale investment opportunity for the dominant sub-regional shopping centre.
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