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Tuggerah

14 Pioneer Avenue, Tuggerah NSW

Equity syndication

Commercial building acquisition

Acquisition date: June 2018

Purchase Price: $10.11 million

Target cash return: 3% p.a. in year 2 growing to 17% p.a. in year 5

Target Investor IRR: 12-14%

Overview

The property is located in a major commercial and industrial area of the Central Coast, approximately 1 hour drive from Sydney. The locality houses the region’s second largest shopping centre, Westfield Tuggerah, and the Tuggerah Super Centre and is at the centre of one of NSW’s fastest growing corridors, between Sydney and Newcastle. The 4,545m2 commercial office building, constructed in 2003, presents extremely well and offers a level of accommodation and amenity significantly superior to competing stock within the Tuggerah Business Park which houses over 200 businesses. It has 180 on-grade carparks. The property was acquired with vacant possession from Ausgrid (who had occupied the building since 2009). Concurrent with acquiring the property, Bricktop secured a 5-year lease from the NSW Department of Education as a cornerstone tenant, accounting for approx. 21% of the net lettable area of the Property. The opportunity for investors is to share in the upside from the leasing of the balance of the property.

Investment Strategy

Once the property is fully occupied, it will provide investors with a strong underlying return on investment. Subject to market demand and Council approval, there is the potential for further development in the future.

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