Centuria snares hospital site, mall

Cameron Park Plaza was completed in 2020.

Centuria has snapped up two assets on behalf of institutional partnerships.

In west Newcastle, the manager is paying Woolworths’ construction arm Fabcot $60.25 million for the two year old Cameron Park Plaza.

The result reflects a circa 4.6 per cent yield; five of the 11 first-round bids were at sub-5pc returns, the agents added.

On a 3.77 hectare B2 Local Centre site, the complex includes 7037 square metres of lettable area, about half (3857 sqm) which is occupied by the supermarket and BWS.

PETStock and Snap Fitness are amongst three mini-majors. There are 17 specialty stores too.

With a two pc vacancy, the Weighted Average Lease Expiry is eight years.

There is also development upside, with structures covering a low 18.6pc of the block.

Centuria will hold the asset in its Daily Needs REIT, managed for GIC.

Colliers’ James Wilson, Alex James-Elliott, Holly Simmonds and Nick Cavenagh represented Fabcot.

“The campaign resulted in c$500m of qualified, undeployed capital, that is required to be invested,” Mr James-Elliott said.

The property was the first NSW neighbourhood centre leaseback offer from Woolworths (or Coles) for 12 months, according to the agent.

Cameron Park is 17 kilometres from central Newcastle (story continues below).

Centuria to deliver Alexandria hospital

Centuria also today snapped up an Alexandria site permit-ready for a seven level hospital.

On 3000 square metres covering 28-32 Bourke Road, incorporating a Sydney City Tyres outlet, the proposed 10,500 sqm facility is expected to have a c$163m end value.

Almost half (43pc) has been pre-committed for an initial 15 years.

The asset will be held by the Centuria Prime Partnership (CPP), sponsored by Morgan Stanley Real Estate Investing, which also earlier this year acquired a portfolio of 38 New Zealand aged care homes form Adamantem Capital.

Following the deal, CPP’s development pipeline is worth $372m.

“Alexandria benefits from its proximity to Sydney’s CBD while providing significantly sized land parcels that are idea for private hospitals, which require large floorplates and multiple levels,” Centuria joint chief executive officer, Jason Huljich, said.

“This is a rare opportunity to deliver new, bespoke healthcare infrastructure in such a central location for Sydneysiders, which is why we are confident it will attract other allied health operators seeking to co-locate at the hospital,” he added.

TGC Agency’s Paul Hunter and John Romyn brokered the Alexandria sale.

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Marc Pallisco

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