The Forza Epping Fund is an unlisted property fund which holds an established LFR centre of 21,989m² of GLA on a landholding of 74,840m² and is located 450 metres from Epping train station, 22km north of the Melbourne CBD.
Zoned Activity Centre zone, the Property also has future development potential given it can accommodate a range of uses on the site up to 7-8 levels in height. This gives the Fund flexibility in how it can drive its future income streams.
Purchased off market for a very compelling price of $54,250,000 or $725m², the Property is currently 97% occupied. The Fund is currently managing multiple strategies to add value to the Property including:
- Construction of additional showroom space on underdeveloped parts of the site.
- Reconfiguration of tenancy mix to improve customer experience and drive rental returns
- Substantial opportunity to improve the sustainability credentials of the property with the addition of a large solar and battery installation to generate benefits to tenants alongside new income streams.
The list of tenants occupying the Property includes high quality covenants such as Officeworks, Chemist Warehouse, Centrelink, Lincraft, Subway, Harvey Norman, Supercheap Auto and Autobarn, together with other local retailers and service businesses.
The Property has strong LFR tenant demand with the investment underpinned by the opportunity to benefit from improved sustainability credentials of the Property
Acquired at a passing yield of 6.47% and building rate of $2,467m² based on NLA, the Property has low site coverage at 29% which provides scope for further improvements to increase revenue streams, optimise the tenancy mix and extend lease durations.
Achieving leading sustainability outcomes is a key driver across all Forza Capital investments. Our preliminary studies suggest that 64% of electricity needs can be generated on site, and we are now working towards delivering a large scale solar and battery installation at the Property.
