The XCap LFR Heatherbrae Fund: Large Format Retail in a Strategic Corridor

Along the New South Wales coast, much of the movement of people and goods is channelled through the junction of the Pacific Highway and the M1 motorway in the Hunter Region. Located around two hours’ north of Sydney CBD, the site is a high traffic volume location, with Infrastructure Australia noting approximately 60,000 vehicles per day, including freight, local and regional traffic.

Strategically situated at this junction is the recently completed Heatherbrae Supa Centre, an 18,500 square metre site comprising a large-format retail, fast food and fuel Centre. The Centre is home to a variety of well-known discretionary and non-discretionary brands. Investors can invest in the asset through the XCap LFR Heatherbrae Fund, a single asset fund available to wholesale investors.

Heatherbrae Supa Centre, XCap LFR Heatherbrae Fund

A Purpose-Built Large-Format Retail Centre

The tenancy mix at the Heatherbrae Supa Centre includes Anaconda, Petbarn, RSEA, Oporto, Red Rooster, Subway, Zarraffa’s and Metro Petroleum.

With 96 per cent occupancy and an impressive 11-year WALE by income, the Fund is positioned to deliver a highly stable and predictable income stream throughout the expected seven-year investment term.

The Centre provides approximately 7,800 square metres of net lettable area across nine tenancies, supported by 138 on-grade car parks and a layout designed to accommodate high vehicle circulation.

“The Heatherbrae Supa Centre is a high-quality asset in a central growth corridor in the Hunter Region. The Centre benefits from its high occupancy, comprised of national anchor tenants who have all committed to strong leases. The Centre sits in the path of long-term regional growth, and is expected to deliver a strong and consistent return profile to investors,” says Director Jonathan Craig.

Heatherbrae Supa Centre tenants Anaconda, Petbarn and RSEA

Income Profile and Fund Returns

The stable income profile at Heatherbrae reflects XCap’s focus on assets where the income profile is strong from the outset. As at December 2025 leasing levels, net passing income for the Centre is forecast at approximately $1.98 million per annum.

The Fund is targeting average cash distributions of 6.5%-7.0% per annum and a total target internal rate of return of 10.5%-11.0% per annum, both net of fees and expenses over an assumed seven-year term*. Distributions will be paid quarterly.

As Managing Director Geoff Robinson explains, “We only launch a Fund to market if we are prepared to commit our own capital alongside investors. Co-investment is one of the clearest signals of our conviction in an asset and its structure.”

A Location Shaped by Infrastructure and Growth

Heatherbrae Supa Centre sits within one of the Hunter Region’s key movement corridors, serving a catchment of local residents, industrial precincts, logistics operators, tourism traffic and interstate freight moving between Sydney, Newcastle, the Hunter and Northern New South Wales.

The wider Hunter Region is one of Australia’s largest and most diverse regional economies, with employment across health, education, defence, logistics, manufacturing and professional services supporting steady demand for everyday retail, fuel and services.

“From an economic perspective, Heatherbrae sits within the flow of the Hunter rather than on the fringe of it. That connectivity, and the diversity of activity around it, are key reasons we are comfortable holding the Centre in the Fund,” says Geoff.

Heatherbrae Supa Centre’s location at the junction of the Pacific Highway and the M1 motorway

Built and Delivered by a Proven Partner

The Heatherbrae Supa Centre has been developed by GWH, XCap’s partner business and one of the Hunter Region’s most active development and construction groups.

Being a newly built centre, the property is expected to require relatively low capital expenditure over the Fund’s investment horizon, subject to normal lifecycle and leasing requirements. The development quality and specification provide XCap with confidence in the physical asset, its ability to meet tenant requirements over time and its ability to deliver strong, stable returns to investors.

For XCap, the relationship with GWH is more than a pipeline advantage. It brings a delivery-informed view to every decision around leasing, maintenance and capital works, and provides insight into the practical drivers of tenant performance in regional large format retail environments.

GWH construction team upon project completion

30 Years of Newcastle Knowledge & Experience

The Heatherbrae Fund is representative of XCap’s broader investment philosophy. It focuses on a single asset in a region XCap understands deeply, backed by its relationship with GWH which has 30 years of development experience in the Newcastle region.

Here, economic activity is anchored by long-term drivers and supported by significant infrastructure investment. The structure seeks to balance income generation with disciplined leverage and risk management.

“Heatherbrae reflects the asset quality, regional insight and structuring discipline we bring to every fund XCap launches to market. It gives investors the opportunity to partner with a regionally focused funds management team with strong on-the-ground connections, through a single-asset investment in a corridor we know well,” concluded Geoff.

For wholesale investors and advisers looking for exposure to regional commercial assets with a clear, long-term income profile, the Fund provides a focused way to participate in the growth of the Hunter corridor through a targeted property.

If you’re interested in investing in the XCap LFR Heatherbrae Fund, please visit the ‘Current Opportunities’ page. There, you can access the Information Memorandum and Trust Deed, which you should read in detail before deciding to invest.