Newmark Warrnambool Property Trust
The Trust is a fixed term, unlisted property fund that is forecasting a distribution yield of 8% pa and targeting an IRR of 11% to 15% pa (not guaranteed). (For Wholesale Investors Only)
The investment objective of the Trust is to pay Unit holders regular quarterly income distributions with potential for capital growth over the medium to long-term. The Trust is also expected to provide tax deferred benefits.
Investment strategy
The Newmark Warrnambool Property Trust (Trust) owns Gateway Plaza Shopping Centre (Gateway Plaza or the Centre), a dominant sub-regional shopping centre in the strong and growing economy of Warrnambool, Victoria.
Open to
Wholesale clients only. The Trust is not open to retail clients.
Distributions
Quarterly, paid within six weeks after the quarter end. The forecast distribution yield to be paid to investors for the period from 1 October 2023 to 30 September 2024 is expected to be 8.0% p.a., partially tax-deferred.*
Target Internal Rate of Return (IRR)
11 to 15% p.a.*
* Distribution and IRR forecasts are not guaranteed and are subject to assumptions, risks and uncertainties detailed in the Information Memorandum.
Financing
The Trust has executed a debt facility with a major Australian bank. The Trustee has entered into interest rate hedging arrangements for 100% of the Trust’s interest rate exposure for almost three years, which is co-terminus with the debt facility.
The loan to value ratio of the Trust is 50%.
Exit strategy
The primary exit strategy for the Trust is divestment of the property at the expiry of the initial term and a final return of investors’ equity.
Initial Investment Term
6 years from Trust establishment. It is not expected that liquidity will be available during the Term.
Significant income weighting to major national and chain retailers.
Anchored by Coles, Kmart and Aldi, which together occupy 65% of the gross lettable area (GLA). The centre offers national and chain retailers including food, fashion and services that account for 95% of the GLA.
Major regional service centre
Warrnambool is the major service centre in the south western region of Victoria. Employment strengths are in the service sectors of retail, education, trade and tourism, health and community, food processing and government.
Upside potential
There are opportunities to create pad sites for other retailers outside of the centre in the carpark area which we are actively working on, and is incremental to our forecasts. Also, our analysis suggests that a number of the specialty retailers are currently on below-market occupancy costs. Newmark intends to deliver positive rental growth upon renewing these leases and has already secured additional incremental rent compared to forecast.
Major government infrastructure investment
This includes the Warrnambool rail line upgrade between Warrnambool and Geelong for an estimated cost of $251.85 million and the $384.2 million redevelopment of the Warrnambool Base Hospital expected for completion in 2026.
Prominent location
The centre is prominently positioned on the Princes Highway and is the primary shopping centre in Warrnambool. It is well located located in the middle of Warrnambool’s eastern activity district and at the doorstep of the region’s housing growth corridor.
A thriving retail growth precinct
The centre is located in a precinct that will continue to be a focus of Warrnambool’s future commercial and retail growth. The precinct features Woolworths, Bunnings, Dan Murphy’s, Spotlight and Harvey Norman.
Anchored by Major Tenants
Mini Major Tenants
National Tenants
This information has been prepared by Newmark Capital Limited ACN 126 529 690 AFSL No. 319372 (‘Newmark Capital’) as trustee of the Newmark Warrnambool Property Trust. This information is current only as at the date it is issued or as otherwise stated herein.
This information may not be reproduced or distributed without Newmark Capital’s prior written consent.
This information is not an offer or invitation in respect of units in the Trust. This information contains selected information and should be read in conjunction with the Information Memorandum for the Trust when it is available. The Information Memorandum will include important information about the Trust including benefits and risks of an investment. Newmark Capital accepts no responsibility for the accuracy of statements, which are based on information and research published by third parties. This information may include photographs and illustrations that are indicative only and which may be subject to change. Newmark Capital does not give any representation or guarantee that any particular results will actually occur and reserves the right to change any design or statement contained in this information without notice to you.
This information is not personal investment or financial product advice and is not intended to be used as the basis for making an investment decision. Newmark Capital has not considered the investment objectives, financial situation or particular needs of any particular reader. You should consider your own financial situation, objectives and needs, conduct an independent investigation of, and if necessary obtain professional advice in relation to, this document and the Information Memorandum. The Offer will only be open to wholesale clients, and is not available to retail clients, as those terms are defined in the Corporations Act 2001 (Cth).
The IM does not purport to contain all the information that may be required to evaluate any transaction in relation to the Trust (or would be required if it were a product disclosure statement). Before investing, the Recipient should conduct their own independent review, investigations and analysis of the Trust and of the information contained, or referred to, in the IM and, where necessary, consult their professional advisors. None of Newmark or its related entities and directors, officers, employees, agents, advisers, associates or representatives (Newmark Group) make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the information contained in the IM or provided before or after the IM to the Recipient by any members of the Newmark Group, including, without limitation, any physical descriptions, historical financial information, estimates and projections and any other financial information derived from such information, and nothing contained in the IM is, or shall be relied upon, as a promise or representation, whether as to the past or the future.
All statements of opinion and/or belief in the IM and all views expressed and all projections, forecasts or statements relating to expectations regarding future events or possible future performance of the Trust represent Newmark’s assessment and interpretation of information available as at the date of the IM and relate to Initial Investors holding Ordinary Units only, unless stated otherwise. Further, any projections or other estimates of returns or performance are based on certain assumptions that may change. No representation is made or assurance given that such statements, views, projections or forecasts are reasonable or correct or that the objectives or prospective returns of the Trust will be achieved. The forward-looking statements included in the IM involve subjective judgment and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, or are unknown to, the Trustee and Investment Manager. Actual future events may vary materially from the forward-looking statements and the assumptions on which those statements are based. Recipients must determine for themselves what reliance (if any) they should place on such statements, views, projections or forecasts and no responsibility is accepted by the Newmark Group. Recipients are strongly advised to conduct their own due diligence. Past performance is not a reliable indicator of future performance.
All amounts shown in this document are in Australian dollars unless otherwise stated.
Newmark, with a wealth of real estate experience and a genuine passion for the industry, provides high-quality property investment opportunities.
Newmark has maintained a strong track record since 2011, allowing investors access to major Australian commercial properties across ASX listed and unlisted funds. With assets exceeding $1.6 billion under management, Newmark has consistently delivered an average 15% annual internal rate of return across its income-based investment funds.
Focused on generating income and superior returns, we apply a patient and prudent approach to investing but an active approach to asset management. Our expert team actively monitors the market for quality opportunities that meet our strict investment criteria. Rather than turn over assets in the short term, we buy, hold and enhance properties to create enduring value and, when compelling opportunities present, we always consider divesting.
Our portfolio comprises some of Australia’s most iconic and sought-after office, retail, hotel and large-format retail assets, including: Jam Factory (VIC), Como Centre (VIC) and David Jones Menswear Store (299 Bourke Street, Melbourne).
When we established the firm in 2011, it was our shared vision to offer investors exposure to the income and capital-growth potential of this asset class. Often difficult to access, it is the inherent qualities of these properties – prime locations, value-add opportunities and high-calibre tenants – that can yield superior investment outcomes relative to other assets.
Holding senior roles across commercial property investment, development and management for more than 30 years, Chris brings expert problem solving skills and idea generation to Newmark. His incisive, strategic thinking and quiet ability to solve problems is informed by 13 years with Lend Lease where he managed construction projects from the ground up, five years with Mirvac and over 10 years spent growing Newmark.
Drawing on an in-depth and big picture understanding of the industry, Chris has a keen eye on the market and ensuring investors interests are protected, while maintaining equanimity in business negotiations. His command of investor, governance and risk issues allows him to create innovative solutions.
Chris has a Melbourne University Bachelor of Architecture degree. He believes the built solution is only a small part of an asset story. His analytical approach is reflected in his grounded understanding of local commercial market drivers.
Chris was a member of the AFL Commission from 1999 – 2016, and has several company direct relationships prior to founding Newmark Capital.
Mark is a highly collaborative executive leader with more than 25 years’ experience in the property funds management industry uniquely skilled as an investor, operator, director and platform builder. He has a proven track record of successfully growing businesses, people and teams for the benefit of investors.
At Newmark, Mark is responsible for the funds management platform, working closely with all team members to maintain trust and create value for investors, tenants, employees, partners and the community.
During his careers with Australian Unity, Investa Property Group and Stockland, Mark has managed several property funds in the ASX listed and unlisted environments; had commercial accountability for an investment funds management business spanning commercial property, equities and fixed interest products; built cohesive teams across various functions ranging from investment management through to sales, marketing and operations; and launched innovative new products and led various M&A and IPO transactions.
Mark holds a Bachelor of Business from University of Technology, Sydney and was the Joint Chairman of the Wholesale and Retail Fund Manager’s Forum for the Property Council of Australia.
Hugh has over 15 years of experience in the real estate industry having worked across development, funds management and advisory. Before joining Newmark, Hugh was the Victorian state lead for KPMG’s real estate advisory team and prior to this he worked in property funds management at both Macquarie and Orchard.
Hugh is responsible for managing Newmark’s Unlisted Funds, with his primary focus being on maximising returns to investors, which he does via utilising his in-depth market knowledge, applying his highly developed analytical skills and a pragmatic approach.
With over 25 years of financial services experience George has a trusted reputation and is well connected with key industry financial advisory groups. He brings to the task of establishing Newmark’s distribution network extensive industry knowledge. Through executive level roles across institutional, retail, international funds management and private wealth businesses, George has developed highly nuanced communication skills allowing him to relate to a variety of risk profiles and personalities. In his senior roles with financial services groups including Challenger and IOOF he was responsible for capital raisings for specialised managed offerings, property and infrastructure syndicates including overseas closed end funds.
Quarterly Report for September 2023 Quarter.
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Published by Newmark Capital Limited
Published by Newmark Capital Limited
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This offer of scheme interests is available to wholesale clients only. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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