Queensland shopping centre Gladstone Central sells for $20.2 million
Goldman Sachs – as Mortgagee in Possession – has sold the Gladstone Shopping Centre in northern Queensland for $20.2 million.
The complex, incorporating the Night Owl Centre and Spotlight Centre, sits on a 1.89 hectare site at 45-69 Dawson Highway, Gladstone Central, about 500 kilometres north, by road, of Brisbane.
With 12,579 square metres of retail area – part of which is leased to Gladstone’s only cinema – the property includes 366 car parks.
At present, the asset returns $2.4 million in annual rent – this means it is selling on a passing yield of 11.9 per cent.
However, CBRE marketing agents Peter Rossi and Darren Collins said the rental return would rise to just over $3 million if the retail areas were fully leased.
The centre offers the potential to be re-positioned, perhaps following a renovation. Part of land currently allocated as car parks could also be considered for development.
Restructuring Solutions Chris MacDonnell acted for Goldman Sachs, which acquired the asset in 2012 as part of a distressed property debt portfolio from the Bank of Queensland.
Mr Collins said “with Gladstone widely regarded as a challenging market, the team took a deep dive to understand the factors that will drive the city’s recovering, including multiple infrastructure projects supported by various industry sectors and both sides of government”.
“Our national campaign produced eight Expressions of Interest and secured a purchaser with a proven track record of acquiring assets that require repositioning through active leasing and management strategies”.
Gladstone Central failed to sell when it was last listed for sale in 2016.
