Fund managers swoop on Bundaberg shopping centre
QIC has sold Bundaberg’s Hinkler Central for $107 million – a modest paper loss on the $110m it paid eight years ago.
Boutique fund managers, Sydney based Centennial and Adelaide’s Parkstone, are the buyers; the deal reflects a circa 7.75-8 per cent passing yield.
The asset will be slotted into a fund now calling on investors promising annual distributions of over eight per cent and an overall return of 13-15pc over five years.
QIC also held the mall in a trust – the Active Retail Property Fund.
The deal comes two years since MA Financial purchased Sugarland Plaza for $140m.
Earlier this year meanwhile, Melbourne’s Fawkner Property acquired the Gladstone Shopping Centre, between Bundaberg and Rockhampton, for $139m.
The seller of both those centres was Stockland.
Hinkler Central
On 4.85 hectares at 16 Maryborough Street, bound by Electra and Barolin, and Saltwater Creek, Bundaberg Central, Hinkler Central contains 20,827 square metres.
About 95pc of income is derived from national tenants including the anchors, Coles, Kmart and Woolworths.
There are also 56 specialty stores and 1056 car parks.
As at June 30, the landlord put annual visits at 4.5 million (story continues below).
The catchment is estimated at 98,550 growing at c1pc pa for the next decade.
QIC quits Bundaberg
QIC’s purchase price was considered bullish, reflecting a 6.5-7pc yield and a c$16.8m premium on its June 30, 2014, valuation.
Mirvac had not long earlier spent $20m revamping the complex after the 2013 floods.
JLL’s Sam Hatcher, Jacob Swan and Nick Willis brokered the latest deal.
The asset was also for sale via a different agency last year.
The incoming owners are expected to reposition the mall which also has below-average occupancy costs.
The disposal comes as Lendlease is speculated to be selling Cairns Central for c$400m.
That seller also recently offloaded that town’s Smithfield Central for $140m to Alceon and CPRAM Investments.
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