Newmark Capital has entered into an arrangement to acquire the proposed Warragul KMart & Bunnings for $51M.
The Warragul Property is located in regional Victoria 107 km southeast of Melbourne. It is a highly visible location at the intersection of Hazel Drive and Queen Street.
The proposed project will house a Bunnings Warehouse, Kmart Discount Department Store, Reject Shop, Tyre and Auto and additional large format retail. The centre will include parking for 627 on grade cars.
The property has a site area of 57,230sqm, and is zoned Special Use Zone 5 under the Baw Baw Shire Planning Scheme.
As part of the deal, Newmark will engage the Troon Group to develop the large format retail centre on a fund through basis. Under the arrangements, Newmark Capital will fund the developer’s construction and development costs up to a specified cap.
Newmark Capital has secured a $35m land acquisition facility and a $65m construction debt facility with a major Australian bank to fund its requirement to pay the progressive payments of construction and development costs to the third party developer.
The acqusition will sit within Newmark's Hardware Trust which aims to invest in a diversified portfolio of retail properties that feature leading national retailers such as Bunnings, Kmart, Officeworks and JB Hi-Fi. The Trust currently owns Bunnings stores in Launceston, Maroochydore and Lake Haven.