Core Property Assigns Recommended Rating to the XCap LFR Heatherbrae Fund

Core Property Research has released its independent report on the XCap LFR Heatherbrae Fund, assigning the opportunity a Recommended rating.

The recommendation places the Fund within a select group of reviewed large format retail opportunities and demonstrates the strength of the asset, capital structure and fee framework underpinning the investment.

At the centre of the opportunity is the Heatherbrae Supa Centre, secured by national tenants and located in a high-exposure position on the Pacific Highway within the Port Stephens and Newcastle corridor.

The Fund is targeting an initial distribution of 6.3% per annum and a forecast IRR of 10.5% to 11.0% over a seven-year term.

Map of the Heatherbrae Supa Centre

For Director Jonathan Craig, the recommendation reflects confidence in the underlying real estate.

“This is a recently delivered asset secured by national retailers on long leases, built to a standard we are prepared to hold ourselves. Asset quality and location remain the foundation of any durable income stream.”

The XCap LFR Heatherbrae Fund sits within XCap’s integrated model alongside GWH, its Newcastle-based development and construction delivery partner with a long-standing regional track record of over $2.5 billion of completed projects since 1997.

That continuity from development through to fund ownership shapes how opportunities are selected and brought to market.

XCap and its related entities are also materially invested in the Fund, reinforcing alignment across the full investment term.

Heatherbrae Supa Centre

Managing Director Geoff Robinson says the rating acknowledges the balance between asset strength and financial discipline.

“In a more selective capital environment, independent recommendation carries weight. For the XCap LFR Heatherbrae Fund, it confirms that the asset quality and capital settings stand up against comparable large format retail opportunities.”

For XCap, the Recommended rating reinforces a clear investment philosophy: identify regionally advantaged assets, contemplate the current economic environment, structure conservatively, and commit meaningful capital alongside investors. Independent validation of that approach reflects the discipline embedded in the platform.

The full Core Property research report on the XCap LFR Heatherbrae Fund is available here.