Abacus spends $147.7m on shopping centre, self storage

Abacus plans to reposition The Oasis Centre with offices and non-discretionary retail.

Abacus Property Group is paying a KKR affiliate $103.5 million – book value – for the balance 60 per cent of Broadbeach’s The Oasis Centre which it didn’t control.

Last month, SCA Property Group paid ISPT $44.5m for Mount Isa Village.

Coincidentally, the partnership paid Brookfield that exact amount for the complex in March, 2015. It then injected $60m on a refurbishment.

The vendors unsuccessfully tried to sell the asset in late 2019; JLL and McVay Real Estate were the agents.

Elsewhere in Queensland, last month, ISPT sold SCA Property Group the Mount Isa Village – with 9685 sqm – for $44.2m.

Blackstone also offloaded Toowoomba Central for $145m – a sharp drop on the c$200m expectation when it was offered 18 months ago.

The Oasis Centre, Broadbeach

Constructed in 1989, The Oasis Centre at 75 Surf Parade contains 16,909 sqm of retail, 7490 sqm of office and 998 car parks.

Allianz; the Broadbeach Tavern and Woolworths are the anchors.

It is four per cent vacant with a  5.2 year Weighted Average Lease Expiry.

The purchase price reflects a net passing yield of 7.3pc, Abacus said.

“Full control of the asset will allow Abacus to pursue future opportunities and to continue to reposition the asset toward office, health and beauty services and other uses, with The Oasis Centre becoming acknowledged as the commercial hub of Broadbeach,” the manager added.

Broadbeach is four kilometres south of Surfers Paradise (story continues below).

In March, Abacus and Charter Hall paid $63.5m for Brisbane’s 241 Adelaide St.

Four self storage assets

In a separate deal, Abacus is paying $44.2 million for a portfolio of four self storage investments.

Two of them are in Sydney – at Kirrawee and Revesby.

The others are north of Adelaide – Windsor Gardens and Woodville North.

The blended vacancy rate is 8.5pc.

The acquisitions come five months since Abacus paid Michael Tate and David Scanlon c$50m for the 75pc balance of the Storage King business which it didn’t own (it acquired the first tranche in 2018).

More to come

Abacus has also exchanged six small scale industrial and office assets for a total of $63.1m.

Settlements will occur over the next 12 months.

“Since our strategic refocus announced in 2018, we have successfully and efficiently transacted to pivot the group’s balance sheet towards strong income producing assets and are confident through execution of strategic asset plans, each of the [Oasis and self storage] assets will deliver long term sustainable returns for out stakeholders” managing director Steven Sewell said.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.