Fawkner Property has snapped up another shopping centre from Stockland.
Stockland Cairns, on 11.13 hectares at Earlville, is costing $146 million – book value – reflecting a 6.75 per cent yield.
The asset will seed the Essential Services Trust No 17, available to investors in the first half of next year.
The deal comes eight months since Stockland sold Fawkner the Traralgon Centre Plaza in regional Victoria for $85m.
CBRE’s Simon Rooney brokered the off-market Cairns deal for Stockland, which on Monday announced plans to sell up to $2 billion of retail and aged care assets to focus on its residential development pipeline.
Fawkner’s general manager of Funds Management, Stuart Fox, said the purchase was a fantastic result for both parties given its strict focus on essential services assets and community based town centres.
“In a market that has moved a lot in recent months, we are delighted to acquire such a prominent and high performing centre that is heavily weighted toward essential service tenants,” he added.
Two months ago, Fawkner snapped up Mackay’s Mount Pleasant Centre for $162.5m from Vicinity Centres.
In June the fund manager paid $195m for Perth’s The Square Mirrabooka from Perron Group, which held it three decades.
Upon settlement of the Cairns asset next quarter, Fawkner will hold over $1.5 billion in Essential Services funds.
Last week we reported the group sold a Heidelberg, Melbourne office, to Charter Hall for c$40m (story continues below).
Another Queensland mall sale
Stockland Cairns – which is expected to be renamed – contains close to 50,000 square metres and about 2400 car parks.
Coles and Woolworths are amongst the anchors; Big W, Target and BBC Cinemas are others.
There are also 11 mini majors, 97 specialty stores and seven pad sites.
National retailers occupy 89pc of the complex and contribute to 83pc of the income.
The sale comes in the week Greenpool and Qualitas paid Vicinity Centres $132m for a half stake, and management rights, of Gold Coast’s Runaway Bay.
The same buyers outlaid $128m for the balance last month. That vendor was Perron Group.
Last quarter, Lendlease’s Australian Prime Property Fund Retail banked $358m selling a 50pc interest in Harbour Town, also on the Gold Coast, to Vicinity.
In August, MA Financial snapped up Bundaberg’s Sugarland Plaza for $140m from Stockland.
Coincidentally, Mr Rooney brokered these four deals and Mount Pleasant Centre.
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