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AQR’s portfolio worth $360.5M amid 7-Eleven purchase

Commercial, Real Estate
ASX:AQR
23 September 2019 00:05 (AEST)

APN Convenience Retail has agreed to acquire 7-Eleven in Maroochydore, Queensland, for $6.85 million.

The Fund group stated this particular location is a strategic investment.

“We are thrilled with the acquisition of 7-Eleven Maroochydore. This acquisition represents an outstanding opportunity to own a high profile corner site on a major arterial road underpinned by one of Australia’s most successful convenience retailers, 7-Eleven, who have agreed to a new 12 year lease with fixed 3 per cent annual rental increases,” AQR Fund Manager Chris Brockett said.

The 7-Eleven in Maroochydore is positioned on the beach town’s major arterial road which links the town centre to the southern beaches.

Reportedly, 85 per cent of the rental income comes from 7-Eleven and the remainder comes from Auto Leaders, a longstanding vehicle servicing group.

“The property not only benefits from over 20,000 passing cars per day but also from a favourable ‘Principal Centre’ zoning allowing major residential, commercial and retail uses,” Chris continued.

Being located in a multi-use zone gives flexibility in the future and provides strong long-term security.

Once the acquisition settles, AQR’s portfolio will comprise 69 properties, valued at $360.5 million. This reflects a weighted average capitalisation rate of 7 per cent and a portfolio WALE of 11.3 years.

The Fund has also announced the sale of three Puma sites at D’Aguilar, Wacol and Wynumm, for $9.8 million have now settled.

The recent acquisition of Coles Express Ayr in Queensland for $4.74 million has also been completed.

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