Core Property has reviewed the XCap LFR Heatherbrae Fund, a property fund that invests in the Heatherbrae Supa Centre, located at 2179 Pacific Highway, Heatherbrae (Port Stephens/Newcastle) on the Hunter Coast region of NSW.
The Fund is managed by XCap Management Pty Ltd, the funds management arm of GWH, a regional Newcastle-based builder, with a track record of over $2.5 billion of completed projects since 1997.
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The Fund invests in a mixed-use property, consisting of a Large Format Retail/Fast Food/Service Station located on a high traffic site on the Pacific Highway with 50,000 passing cars per day.
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Recently constructed (October 2025) by GWH, the Property has a robust tenant mix with established operators including Anaconda, Pet Barn, RSEA safety and workwear, Red Rooster, Oporto, Subway and a Metro Petroleum service station; all with long leases of 10 - 12 years and fixed rental increases of 2.75% - 3.50% p.a.
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The Manager is targeting initial distributions of 6.3% p.a., with average distributions of 6.5% p.a. over 7 years, and an IRR of 10.5% p.a. – 11.0% p.a.
The Fund is seeking to raise $19.0M through the issue of 19.0M units at $1.00 per unit. The Offer is available to wholesale investors only with a minimum subscription of $100,000.
Core Property has rated the Fund as RECOMMENDED.