Lendlease banks $140m from shopping centre
Lendlease has sold another Cairns shopping centre, this time at Smithfield.
The 12.4 hectare Smithfield Centre, at the north west corner of the Captain Cook and Kennedy highways, is speculated to be collecting $140 million from Alceon and CPRAM Investments.
The result would reflect a circa 7.5 per cent yield.
It also demonstrates an impressive windfall for Lendlease which paid $23m for the mall in the mid-1990s then outlaid $5m for an adjoining 8.7ha site.
Initially held by its flagship Australian Prime Property Retail fund, the property has been controlled in recent years by a mandate.
The deal comes two days since we reported the manager sold Cairns Central, in the heart of town, for c$430m.
That buyer was Brisbane based McConaghy Partners.
Lendlease had an interest in that complex since 2001.
Smithfield Centre
The dominant shopping centre in Cairns’ north – on average, every shopper spends $56.74 – Smithfield Centre is passed by over 8.5 million vehicles a day.
With 34,701 square metres, it is anchored to Coles, Event Cinemas, Kmart and Woolworths (story continues below).
Along with six mini majors, these groups contribute to 76pc of the income.
Combined with more than 100 specialty stores, which occupy half the complex, the Weighted Average Lease Expiry is five years.
There are also 1522 car parks.
JLL’s Sam Hatcher and Nick Willis with Stonebridge’s Carl Molony were the agents; they marketed the property’s significant development upside, with buildings covering just 28pc of the site.
They also promoted its strong performance, with moving annual turnover at over $280m per annum (Cairns Central by comparison is $492m).
Smithfield is 15 kilometres north west of Cairns.
CPRAM is led by Olivier Sicouri.
It with Alceon has a track record of investing and selling Queensland shopping centres.
They also hold the Orange City Centre in regional New South Wales.
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