Indigenous Business Australia divests FNQ mall
A Far North Queensland Coles anchored shopping centre has sold for $34 million.
Indigenous Business Australia on behalf of the IREIT Sub-Trust was the vendor; it held Clifton Village on 2.3 hectares at 55 Endeavour Road, Clifton Beach, north of Cairns, since 2017.
With 7811 square metres, the anchor tenancy was refurbished last year – when the supermarket renewed a lease, 10 years.
Melbourne based asset manager Fawkner Property is the buyer.
The result reflects an 8.34 per cent fully let passing yield.
It is the second regional Queensland shopping centre we are reporting Fawkner snapped up today – the other, Gladstone Square, at Gladstone Central, is being acquired from Elanor Investors Fund.
CBRE’s Michael Hedger and Joe Tynan brokered that deal.
These agents with colleague Danny Betros marketed Clifton Village.
IBD holds other investments, offices and retail, in, amongst other states, Queensland, New South Wales and Victoria.
Clifton Village
About 24 kilometres from Cairns, Coles occupies 3214 sqm at Clifton Village.
The supermarket’s lease agreement includes turnover rent.
With 23 specialty stores, Domino’s, Liquorland, QML Pathology, Terry White Chemist and The Reject Shop are amongst other occupiers.
The block, with 377 car parks – 304 undercover – is exposed to Captain Cook Highway, carrying 5.5 million vehicle a year.
The agents closed an expressions of interest campaign April.
They said rising construction costs putting pressure on new supply and future feasibility is driving interest in assets like this, which often trade below replacement cost.
“Since the relaxation of monetary policy, we have seen stronger enquiry levels across all retail investment campaigns in the market with new purchaser groups accounting for 28 per cent, predominantly in the private and syndications sector,” they added.
The deal comes three years since Fawkner acquired Earlville Shopping Centre from Stockland and 18 months since it bought Cairns Central – the latter for $390m – from Lendlease.
In Central Queensland’s Gladstone Central, as well as Gladstone Square, for $26.7 million, Fawkner in 2022 snapped up Gladstone Central Plaza, again from Stockland.
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