Clarence divests Gold Coast mall

Woolworths anchors Ormeau Marketplace (centre).

Clarence Property has sold the Ormeau Marketplace, in the northern Gold Coast, after three years.

The Lennox Head fund manager is banking $34 million, reflecting a 5.24 per cent net passing yield, from a private investor.

Clarence paid family-owned Perth-based Canute Investments $29m.

The mall was developed in 2015.

Clarence purchased Heathwood Hub in February.

Ormeau is in a growth corridor suburb, 35 kilometres north west of Surfers Paradise.

It is about 45km south east of Brisbane.

Ormeau Marketplace

Formerly known as Ormeau Shopping Centre, the complex at 21 Peachey Road contains 4718 square metres.

The bulk (4100 sqm) is tenanted to Woolworths which contributes to 87pc of the income on a lease expiring in 2035.

There are also six specialty stores.

The Weighted Average Lease Expiry is 11.5 years.

The property neighbours the Ormeau Town Centre with a Woolworths-Caltex service station and double storey office and retail building – all up 1518 sqm – which traded for $10.8m seven years ago.

Earlier this month, Coles listed for sale a newly completed mall in the suburb – with 5003 sqm, on 2.3 hectares – at 35-59 Eggersdorf Rd.

Assuming that asset sells on a five per cent yield, it should fetch c$40m (story continues below).

Diversified portfolio

Clarence held Ormeau Marketplace in the Property Diversified Fund, formerly known as the Westlawn Property Trust, which owns 48 assets.

Elsewhere on the Gold Coast, this includes Bell Central Plaza at Mudgeeraba and offices at 183 Varsity Parade, Varsity Lakes and The Rocket, on Robina Town Centre Drive, Robina.

It is also proposing a 5000 sqm commercial building at Robina.

In Brisbane, it controls malls The Zone Underwood and Logan Village Shopping Centre, offices at Hamilton and Spring Hill and industrial properties, at Murarrie, Northgate and Wacol.

Seven months ago it outlaid $30m for a 17 hectare business park, Heathwood Hub.

CBRE’s Joe Tynan and Michael Hedger with JLL’s Sebastian Fahey and Nick Willis sold Ormeau Marketplace.

“Ormeau Marketplace represent one of the first (non-portfolio) neighbourhood shopping centre transactions in Australia since the RBA began raising the cash rate in May, by 225 basis points as of September,” Mr Tynan said.

“The quality of this asset attracted both onshore and offshore investor interest during the competitive off-market process, with the successful purchaser having a portfolio of similar assets across Australia,” he added.

“The sale of Ormeau Marketplace demonstrates the continued focus from groups seeking to invest in this asset class as a hedge against inflation,” according to the executive.

“These neighbourhood centres, where the income is derived from non-discretionary retailers, can benefit from income growth via higher productivity and sales growth in an inflationary environment”.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of