Fortius Takes on the Barracks
Fortius Funds Management has bought a major mixed-use complex in Brisbane, known as The Barracks, from financial services company Challenger for about $162 million on an approximately yield of 5.8%.
The asset sits between the Brisbane Roma Street rail and bus station and Suncorp Stadium in the Petrie Terrace area and is a popular ant track for spectators heading to the stadium.
Challenger acquired the asset in 2014 for about $143M and worked through a remix and re-leasing process to improve the offering with about $10M of capex. Challengers' last external valuation in June 2018 was $151.5M on a 6.25% cap rate.
The property contains a large Coles Supermarket, an Independent Cinema complex, a range of F&B operators and a significant office component.
A number of vacant tenancies have now been replaced and the property is now 90.4 per cent leased, with a weighted average lease expiry of 5.3 years.