Brookfield sells Brisbane site after shelving BTR proposal
Brookfield has sold the prominent Portside Wharf retail and entertainment complex, ending a 22 year association.
The fund manager is reaping $59.4 million from Centennial for the Hamilton mall.
Two neighbouring tracts also offered, were not take up.
The deal comes nearly two years since Brookfield obtained a permit to replace a 7401 square metre portion with its first build to rent investment – two 24 level towers with a total 560 dwellings.
The incoming owner will hold the retail asset in a fund now seeking investors promising annual distribution of 9pc and a 17pc internal rate of return over five years.
It may also develop; Hamilton is set to be a focal point of the 2032 Olympics and accommodate the athlete’s village.
CBRE’s Joe Tynan, Michael Hedger and James Douglas were the agents.
Brookfield bowing out of Hamilton
The 39 Hercules Street properties form part of a six hectare amalgamation Brookfield acquired in pieces, starting in 2003 with its government tender bid to develop a retail plaza and public space around the working Brisbane Cruise Terminal passenger port.
The bulk has been developed – with 540 flats in six buildings.
With 13,731 square metres, the mall is tenanted to 62 businesses with a weighted average lease expiry by income of 6.2 years and a vacancy rate of 17pc (story continues below).
On that basis, the yield is 7.1pc.
Fully let, the return should circle 11.4pc.
There is also immediate commercial development upside, the agents said, including by eating into the major park or creating a marina.
The deal comes a month since we reported Centennial and Parkstone bought Orange’s Summer Street shopping centre for $37.4m.
In 2023 meanwhile, that partnership acquired Bundaberg’s Hinkler Central – outlaying $107m.
Including Portside, it holds c$250m of retail product – a sector it has been focusing on for 12 months.
In the medium term it hopes to manage a c$1b retail portfolio.
The end value of Brookfield’s BTR proposal was put at c$400m.
The group listed the property after buying a 50pc stake in the Journal Student Living platform.
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