Hope Island Fund
Hope Island Centre
340 Hope Island Road, Hope Island, QLD
Hope Island Central comprises seven buildings around an at-grade car park, providing a range of accommodation options which have attracted a diverse mix of tenants. This includes cafes and restaurants, small business operators, professional services firms as well as the Queensland Department of Education and Training (south-east Queensland regional headquarters), which is the single largest tenant (41% of passing income). The Property is well located at the gateway to Hope Island, opposite the site for the proposed Hope Island Train Station.
The opportunity for Investors was to acquire a high-yielding retail/office asset with potential to add-value through active management and tenant re-mixing. Since acquiring the asset, various improvements to the Centre have been completed, including a reconfiguration of the car-park, end-of-trip facilities and new signage pylon. The Investment Manager has improved the occupancy rate from below 80% at the time of acquisition to above 90% and maintained strong distributions to Investors along with a lift in property valuation.
Longer-term, the large 2.05ha site represents an attractive land bank for potential redevelopment.
Key Fund Stats
|Fund Status||Fund Open|
|Acquisition Price||$39.64m (January 2018)|
|Current Distribution Yield (% p.a.)||8.00% p.a. (paid quarterly)|
|Key Tenants||Department of Education, Derivco Australia|