9 January 2013

BB Retail Capital (BBRC) has confirmed today its acquisition of the Jindalee Homemaker Centre (“Jindalee”) in Brisbane for $50.5 million from the GPT Group.
The newly formed BBRC Jindalee Fund, a single asset wholesale property syndicate managed by BBRC, has been used to purchase the centre.
Acquisition of Jindalee Homemaker Centre
Jindalee is an established and dominant homemaker centre in an affluent trade area approximately 13 km south west of Brisbane’s CBD. The centre is 99%(1) occupied with 62% of income underpinned by national retailers including Freedom, Barbeques Galore, Nick Scali, Snooze, Beacon Lighting and Forty Winks.
Jindalee has a gross lettable area of approximately 21,916 square metres with 620 car spaces and is located on a prime 5.8 hectare site with flexible MP3 zoning which allows for development potential and future expansion (subject to regulatory approvals).
BBRC CEO Darren Holland said the acquisition represents an attractive initial passing yield of 10.8% and the weighted average lease expiry is 3.4 years(1).
“Jindalee is our first acquisition in Queensland, lifting our portfolio to over $540 million. This acquisition reinforces our confidence and long term commitment to the large format / retailing homemaker sector in Australia” Mr Holland said.
With the acquisition of Jindalee, BBRC will manage more than 252,000 sqm of retail showrooms over ten homemaker centres across five states and is the largest private owner of homemaker centres in Australia.
The sale was brokered by Simon Rooney and Jacob Swan from Jones Lang LaSalle with a settlement date scheduled for April 2013.
(1) as at 1 September 2012.
Launch of the BBRC Jindalee Fund
The newly formed close-ended BBRC Jindalee Fund (Jindalee Fund) has acquired the asset. BBRC Chairman, Brett Blundy, will be a cornerstone investor in the Jindalee Fund and will also underwrite the equity raising of $25 million.
The Jindalee Fund is the third property syndicate managed by BBRC Funds Management with approximately $150 million of assets under management. The other two homemaker property syndicates (Midland and Mile End Funds) successfully closed late 2012 fully subscribed.
“We see Jindalee as an outstanding investment opportunity due to the attractive acquisition yield and low cost of debt” Mr Holland said.
“Our strategy is to add long-term value to the properties by leveraging our retail knowledge, relationships and expertise to improve the tenancy mix. Our property syndicates allow external investors to benefit from this strategy.”
“With low term deposit rates and a fluctuating equities market, we have received strong interest from sophisticated investors and self-managed superannuation funds. Applications for investments in the Jindalee Fund will commence 1 February 2013, with a minimum investment amount of $250,000. Forecast distributions to investors for the first year are in excess of 10%” he said.
About BB Retail Capital
BBRC was founded in 1980 by Brett Blundy and is one of Australia’s largest private investment companies. In addition to its funds and asset management property portfolio valued at over $490 million, BBRC has management and ownership in an extensive retail portfolio including leading fast fashion jewellery brands (Diva and Lovisa), intimate apparel brands (Bras N Things and Honey Birdette) and home décor brands (Dusk and Adairs). The retail group employs over 7,000 people operating close to 1,000 stores in 25 countries around the world. BBRC also has investments in 2.6 million acres of cattle stations around Australia and minority equity interest in Bridgeclimb