JLL transacts Victoria’s Mernda Convenience Centre for $13.1m
Developer partnership sells Caltex and Hungry Jacks anchored asset for sub 5% yield
Melbourne, April 28, 2020: The Mernda Convenience Centre, located at 1407-1409 Plenty Road, Mernda, Victoria, has sold for $13,100,000 following an Expressions of Interest campaign handled by JLL Senior Director of Retail Investments Stuart Taylor and Director Tom Noonan. The transaction reflected an initial yield of approximately 4.8%.
The property comprises a brand-new freestanding Hungry Jack’s and Caltex-anchored convenience centre. The asset, completed in 2020, is located in the high profile Plenty Road area in the growing suburb of Mernda. The centre provided an attractive 13.1 year WALE (by income) and significant depreciation benefits.
The developer and vendor represents a collaboration of three property veterans; James Hunt, Brett Tooley and Jim Lamb. The developer specialises in the development of convenience retail assets, with a focus on properties anchored by fuel and fast-food tenancies. The developer’s key personnel bring a wealth of industry experience, leading developments for key national retailers including Caltex and McDonalds.
Taylor said, “We received a total of 14 EOI’s for the Mernda asset, with pricing achieved above the vendor’s expectations, demonstrating the level of demand for commercial property assets which are considered defensive in the current environment.”
Noonan added “Investors continue to be attracted to assets with long term leases to essential service or non-discretionary businesses.”
Taylor concluded “Some investors continue to look to direct property as a safe-haven, however they are being highly selective with the opportunities they will consider.”
Vendor James Hunt, said “We have a strong pipeline of convenience retail development projects and will be looking for further acquisitions over the next 6-12 months.”
“We have full confidence in this sector and the strong result achieved in our Mernda project reinforces our investment and development philosophy.”
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion, operations in over 80 countries and a global workforce of more than 93,000 as of December 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.