Marquette Properties are expected to acquire prime Brisbane retail property at 130 Queen Street, Brisbane from the Smorgon family. Currently in exclusive due diligence, this acquisition is expected to total more than $77M on a passing yield of 5.58 per cent.
Located in the heart of one of Australia’s busiest malls, Brisbane’s Queen Street Mall, the centre is anchored by the largest McDonald’s in the southern hemisphere alongside key tenants such as Forever New, Gelatissimo and Money Exchange.
Marquette has proposed a $2.7M capex expenditure to undergo a cosmetic uplift, amenities upgrade and the installation of a new digital billboard. In addition to this upgrade strategy, there are plans to lease up the vacant top floor and renew Forever New’s rental space upon expiration.
The acquisition is expected to be funded by an equity raising of around $40M coupled with debt at a loan-to-valuation ratio of 55 per cent, with an investment horizon of around three years.