EG Long WALE Property Trust No.3

Distribution facility development

11-15 Woodrieve Road, Bridgewater, TAS

  • August 2021

    Date Acquired

  • $0.68 million/$9.3m

    Acquisition Price (land)/ With capital works

  • 7 years

    WALE (post construction)

  • 12%

    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.