Major investment for sale

A HIGH-PROFILE commercial investment anchored by a Hoyts cinema complex at Charlestown has hit the market via expressions of interest.

The Forum has been listed with Stonebridge Property Group, Commercial Collective and Burgess Rawson who have been appointed to sell the landmark commercial property that includes the cinema which holds a 30-year straight lease.

The property is also supported by Hewlett Packard (to 2031) and 10 additional commercial tenancies.

Occupying a 8,282sqm gateway position in Charlestown CBD, The Forum benefits from high exposure being situated along the northbound side of the Pacific Highway.

It is positioned near the largest shopping centre in the Hunter region, Charlestown Square, and is only 10km from Newcastle CBD.

The near 100 per cent leased asset comprises two commercial buildings plus the Hoyts complex, with onsite parking for 226 cars.

It also adjoins a council-owned parking lot which provides a further 285 car spaces.

The Forum boasts WALE of 9.4 years (by income) that is underpinned by a high-quality tenancy profile comprising commercial, financial and professional services, and medical tenants.

“This strategically positioned Charlestown asset has a fully leased net operating income of approximately $2.45 million per annum, which has built-in fixed rental reviews assuring growth,” Rhys Parker of Burgess Rawson said.

“Rarely do assets of this calibre come onto the open market, particularly where there is a significant portion of the income stream anchored by a multi-national tenant.

“The Hoyts lease extends to 2041, representing approximately 36 per cent of gross income.”

The Hoyts complex recently undertook a $3.5 million redevelopment, which Mr Parker said has enabled it to capitalise on strong post-COVID demand across the entertainment industry, with cinemas being a beneficiary of increased consumer spending in 2022.

The Forum is for sale via expressions of interest closing on October 27.