Regional Shopping Centre Investment.

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An opportunity to invest in one of the country's most productive shopping centres:

The manager is looking to raise $58.7m equity to acquire the centre for $107m, representing 19% below peak valuation and 40% below replacement costs. Here are a few key highlights of why we like the deal:

• Acquired at an attractive yield of ~8% with capital growth opportunities.

• Forecast average investor distribution yield of 8.3%p.a. and a conservative forecast IRR of 13%-15% p.a. over the 5-year term

• 99% occupied, 3.2yr WALE and 70% of turnover is underpinned by Majors/Mini-majors (incl. Woolworths, Coles, K-Mart, Reject Shop)

• Centre is ranked 1st in the region it is located in, 3rd in QLD and 11th Nationally in terms of productivity

• All tenants are significantly under-rented, with speciality occupancy cost 33% below the URBIS benchmark, allowing the potential for strong rental growth.

• Bundaberg is the second fasting growing city in QLD, with $4.2bn in committed government infrastructure spend to drive growth

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