The Kestrel Coal portfolio is being offered via an expression of interest campaign, managed by Colliers Brisbane (Tom O'Driscoll and Nick Wedge) and Knight Frank Rockhampton & Region (Pat O'Driscoll and Adam Kelly). 

The portfolio features 143 residential dwellings with a net rental return of $1,718,000 per annum, and properties are a mix of houses and units.

The portfolio is located in Emerald, and makes up an approximate 67,000 square metres of prime residential land. The offering presents a rare opportunity to secure a portfolio in this dynamic and established hub within Central Queensland.

Kestrel Coal is proposing a seven year lease-back agreement, as they plan for continuity in housing for their valued employees. An additional seven year option is also on offer.

In a statement released by Kestrel Coal they emphasised that their highest priorities lie with their workforce and community. "Kestrel has an unwavering commitment to its people. The aim of any path the company will take will be to optimise the housing benefit for (our) employees into the future," said Julian Potten, commercial and services manager at Kestrel Coal.

The leasing structure for consideration involves an annual rental review with a fixed 3% increase per annum. This amounts to over $13 million of rental returns over the first seven year period. The triple net lease structure allows for a low-maintenance investment, granting a sense of autonomy to all parties.

Kestrel Coal is a joint venture with participants EMR Capital (42%), PT Adaro (38%) and Mitsui Investments (20%). EMR Capital and PT Adaro bought Rio Tinto's 80% share of the Kestrel mine for $US 2.25 billion in 2018. Kestrel Coal is one of Queensland's leading metallurgical coal producers, operating an award winning underground longwall mine producing approximately seven million tonnes of metallurgical coal annually.

Kestrel has an approved life of mine for continuous mining until at least 2033 and reserves to 2046 with the potential to increase further.

Kestrel's employees share Emerald as a major hub with the remainder of the Central Highlands region and multiple thriving industries. The region is home to a prosperous agricultural industry, including cattle, citrus, cotton and grain.

Emerald is a cornerstone of the diverse Central Queensland community. The Kestrel Coal portfolio presents an unrivalled opportunity for local and international investors to buy into the growth potential of the Emerald region and interested parties are encouraged to submit their expression of interest.

This article was first published on Queensland Country Life.

For more information contact the agents via the contact form below.