Showroom/Car Wash
The property is a prominent corner location at the intersection of Emerald’s two main roads – the Capricorn Highway (A4), known as Clermont Street in Emerald, and the Gregory Highway (A7), known as Ruby Street. The A4 runs from West East connecting Longreach to Rockhampton (via Emerald). The A7 runs north south connecting Roma with Clermont.
The property is improved by two structures – a multi-bay car wash, and a showroom / sales office for an independent used car dealership. The car wash lease expires Feb 2032 (with two x 5-year options), and the car dealership is a five-year lease (with one x 5-year option).
The combination of this prime location, with medium-term income and an attractive cap rate, makes this an attractive purchase for the Fund.
A combination of a secure tenant, long-term lease, and net lease makes this an attractive purchase for the Fund.
Financial Information:
Disclaimer: Information provided about forecast annual net cash flow and cash on cash returns are derived from unaudited financial projections. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Responsible Entity. The Responsible Entity cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements.
| Property type | Showroom/Car wash |
| Date acquired | 4/11/2024 |
| Land size | 2758m² |
| Building size | 701m² |
| Purchase price | $2,450,000 |
| Independent valuation | $2,450,000 |
| Capitalisation rate used by Valuer | 8.50% |
| Valuation date | 19/08/2024 |
| Occupancy at purchase date | 100% |
| Financing | All cash purchase |
| WALE (Lease Expiry) | 5.6 years |
| WALE (Income) | 5.6 years |
| WALE (Lettable Area) | 5.6 years |
The weighted average lease expiry (WALE) is as at 19 August 2024 on the basis of the property as a stand alone acquisition, not its weighting in the Fund’s total portfolio. More recent information about the the Fund’s portfolio can be found here.