Lendlease sells Cairns Central
Lendlease is selling Cairns Central – Far North Queensland’s biggest shopping centre – and the management rights, ending 22 years of ownership.
The deal with Brisbane based McConaghy Properties, speculated to be worth just over $430 million, would reflect a circa six per cent net passing yield.
It would be the buyer’s seventh retail investment and sixth in Queensland; it also holds Castletown in Townsville, Kingaroy Shoppingworld, Brisbane’s Westlands Plaza and in Toowoomba, Toowoomba Plaza and The Ridge.
Cairns Central would also be its most valuable.
Colliers’ Lachlan MacGillivray and McVay Real Estate’s Sam McVay represented Lendlease which held the asset in the Australian Prime Property Fund Retail, that has in the past 12 months divested Caneland Central, in Mackay, and Craigieburn Central, north of Melbourne.
McConaghy makes it seven
Cairns Central was constructed in 1997 by Coles-Myer and Suncorp.
On 9.4 hectares, with 2564 car parks, it contains 51,972 square metres leased to 186 tenants; Coles, Event Cinemas, Kmart, Myer and Target are the anchors (story continues below).
All up, the retailers generate $492m per annum in sales which is above average; the property attracts 8.88 million visitors per year from a mix of tourists and a burgeoning population.
The Weighted Average Lease Expiry is also long – at 6.3 years.
McConaghy’s plan for the centre is unknown; abutting the Cairns train station, it has significant development upside.
The asset could also be held by the recently launched the McConaghy Retail Property Fund.
The group’s seventh mall is New South Wales’ Lismore Shopping Centre.
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