Acquisition Price (land)/ With capital works
WALE (post construction)
Target IRR p.a.
EG has secured a parcel of land located in Bridgewater (Tasmania) for the purposes of developing a distribution centre on behalf of Sigma Healthcare Limited (ASX:SIG).
Bridgewater is a newly formed industrial estate located 22km from the Hobart CBD. The brand-new distribution centre was completed in October 2022.
The strategy offers investors stable cash distributions due to the strong tenant covenant along with a 15-year lease to Sigma, resulting in minimal leasing risk.
The Trust forecasts an average 9.5% p.a. over the 5-year term, following completion of construction and the initial rent-free period, with a target 7-year IRR of 12% p.a.