Gross asset value

$45M

(50% stake)

Target income yield

7.3%

(average 5 year forecast FY20-FY24)

Target Internal Rate of Return

10+%

(excluding development return)

ICAM acquired 50% of this shopping centre in February 2018 and it has performed very well for our investors.

Churchill Centre North is a modern sub-regional shopping centre featuring Adelaide’s only Costco store, South Australia’s largest Coles supermarket as well as Kmart and Aldi as major tenants together with 55 speciality tenancies, six pad sites and surplus land offering further development potential.

It has a forecast yield of 7.3% on average over 5 years and a target IRR of 10% + (net of fees).

Investment highlights

  • Attractive depreciation benefits with estimated tax deferral of 50%-60% over the first 3 years
  • Desirable 8.7 year WALE
  • 98% occupancy
  • 24,321 sqm of lettable area
  • Anchored by a quality global and national tenant mix including Adelaide’s first and currently only Costco store which acts as a major drawcard in addition to Coles, Kmart & Aldi
  • 55 specialty stores and six pad sites
  • 12,000 sqm of surplus land available for future development (included in acquisition)
  • Strong prospects for population growth in catchment area
  • Prime location only 8.6km from the Adelaide CBD

*upper range of the forecast distribution and IRR is subject to Development Approval and final lease documentation for a new retailer on a pad site on part of the available development land.