Stonebridge Property Group have been appointed to sell Merimbula Square - a fully leased investment occupying a 2,762 sqm island allotment within Merimbula's town centre on the Sapphire Coast of NSW.
Anchored by a renewed 20-year lease to blue-chip tenant, McDonald's, the asset is supported by strong performers Harris Scarfe, Rip Curl, Rivers, 4 specialties and provides at-grade parking for 27 vehicles. The property also features a unique top-floor luxury residential penthouse.
Merimbula Square headlines the Stonebridge October National Investment Sales Portfolio and presents an opportunity to acquire a premium position within a well-connected and popular destination, just 2km from Merimbula Airport. The region is renowned as the tourism and aquaculture epicentre of the Sapphire Coast and has demonstrated exceptional resilience, driven by outstanding accessibility to the nation's capital, Canberra and being equidistant between Sydney and Melbourne.
Sapphire Coast - a thriving tourist destination
The Sapphire Coast has established itself as one of Australia's premier tourism destination locations, boasting 3.4M* visitor nights in pre-pandemic times due to its vast domestic tourism catchment encompassing the eastern seaboard. The region's wealth of natural resources lends itself to a rich diversity of primary industries underpinning a strong $1.57B* economy.
Rare offering to include luxury penthouse apartment
The asset capitalises on its coveted water-facing position through a unique top-floor residential penthouse, showcasing expansive views over Merimbula Lake. The penthouse comprises 4-bedroom + study, three bathrooms, two balconies (including a large wrap-around balcony), a courtyard, full-height windows, and a double lockup garage accessible from a separate laneway. An approved DA for stratum/ strata subdivision further supports flexibility and immediate value-add for this intergenerational asset.
Renewed 20-year lease to McDonalds & annual rental growth
The investment is underpinned by a renewed 20-year lease to McDonald's (to 2039) with a long 6.3-year WALE. Notably, 70% * of the income profile is secured to national tenants and 100% of tenants are subject to fixed or CPI annual reviews.
Strong underlying land & increasing heights
The recent gateway approval at 29-33 Market Street, which saw building height limits raised from 13m to 18m, highlights a progressive sentiment toward development in Merimbula's town centre. The lodged DA at this nearby site proposes a mixed-use development with 52 shop-top apartments, setting strong precedence for the Merimbula Square site and the immediate locality.
Michael Collins, Partner of Stonebridge National Investment Sales said, "Given the highly-prized trophy nature of the McDonald's covenant, opportunities of this nature are incredibly scarce - particularly in one of Australia's premier tourism and aquaculture hubs."
Stonebridge Property Group's National Partner, Philip Gartland adds, "Recently approved uplift to developable height limits for other large landholdings in the vicinity supplements an attractive tenancy mix and offers both a strong income proposition and significant upside possibilities to the astute investor."
Merimbula Square is for sale by Public Expressions of Interest closing Friday 28th October 2022 at 3pm (AEDT).
For further details on Merimbula Square or Stonebridge's October National Investment Sales Portfolio, please contact the exclusive selling agents.
Michael Collins | +61 404 023 204 | mcollins@stonebridge.com.au
Rorey James | +61 439 400 081 | rjames@stonebridge.com.au
Philip Gartland | +61 403 582 324 | pgartland@stonebridge.com.au
