Core Property has reviewed the Realside Malaga Retail Fund, a property fund that invests in the Malaga Home Centre, a Large Format Retail property located in Malaga, 15km north of the CBD in Perth, WA.
The Fund is managed by Realside, a property fund manager with over $1.2 billion of assets under management. The Property consists of 7 buildings on an expansive 4.3 ha site, in one of the main Large Format Retail precincts in Perth.
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The Property is a destination-based Large Format Retail centre with key tenants which include MCQ Supermarket (Asian grocer), REVO Fitness (gym), Powerplay (go-karting) and Better Pets and Gardens. The majority of leases are supported by annual rent increases of 3.0% - 4.0% p.a. or CPI-linked.
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The Manager has a strategy which includes maximising the tenancy mix as well as increasing the rental profile of the centre which is supported by population growth and increased infrastructure spending. The Property is spread across 3 landholdings which also provides the option to sell individual sites to maximise value for investors.
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The Manager is targeting initial distributions of 7.2% p.a., and is targeting its strategy to deliver an upside IRR of 15.2% p.a.
The Fund is seeking to raise $25.4M through the issue of 25.4M units at $1.00 per unit. The Offer is available to wholesale investors with a minimum subscription of $100,000.
Core Property has rated the Fund as RECOMMENDED.