Quanta wraps up 2022 with Lonnie retail centre

Australian Property Journal | Commercial Property, Sales & Leasing | December 8, 2022

By Staff Writers

BUSY property investment group Quanta Investment Funds has closed its third deal in four months, adding a Tasmanian asset to its portfolio in a $13.5 million deal.

Its newest acquisition is a fully-occupied retail centre on St John Street in the heart of Launceston’s CBD. The centre is leased to ASX-listed companies including BCF, Super Cheap Auto, and Beacon Lighting, as well as one of Europe’s largest banks, Rabobank.

Quanta said that the property’s 4.3-year weighted average lease expiry (WALE), paired with the region’s strong tenancy demand made the purchase a low-risk, high-return prospect for investors and the first of its kind for the funds manager, which split from Sentinel Property Group late last year.

The recent purchases have included the $21.1 million buy of fully-leased convenience retail centre Yamanto Village in Ipswich, which it followed up with buying a freshly refurbished 5,576 sqm office building on Ann Street in Brisbane’s CBD for $39 million.

Meanwhile, it offloaded a Big W in the Tablelands Region town of Atherton for $11.8 million.

Quanta Investment Funds CEO Stacey Jones said the Launceston acquisition took Quanta’s assets under management to more than $750 million.

“Securing this property hot on the heels of Ann Street and Yamanto in Queensland has been an incredible way to wrap up 2022,” Jones said.

“Much like Ann Street, we were able to fully subscribe the Launceston Trust opportunity within three weeks and secure a first-year distribution of 8% – a great indication that we’ve got the right team and the right approach when it comes to delivering value for our investors.”

She said purchasing the everyday retail centre enabled the Quanta team to bring investors another true core plus asset.

“There is a lot of appetite out there for high-quality retail investments, particularly where the tenancy mix is strong and there is potential for income and capital growth over time,” she said.

Elsewhere in Launceston, expressions of interest closed in November for the iconic Morty’s Complex retail hub, a convenience and food-based retail asset on 4,433sqm landholding in the CBD.