Region takes haircut on Tasmanian mall
Region Group has sold a Woolworths anchored shopping centre north of Launceston for $14 million – a slight drop on the $14.6m June, 2023, book value.
Riverside Plaza at 298-310 West Tamar Road found favour with a Victorian private investor on a 5.9 per cent yield.
Covering 1.15 hectares, also fronting Cleghorn Avenue and Eden Street, the Riverside asset contains 215 car parks – 43 undercover.
Woolworths’ tenancy spreads 2382 sqm – or just over three quarters of the 3106 sqm complex.
Its rental agreement for the refurbished space expires in 2031 however with options it can stay 20 years more.
Also with seven specialty stores, the investment’s weighted average lease expiry is about six years.
Knight Frank’s Nicholas Bond, Cale Ayers and Scott Newton were the agents (story continues below).
The deal comes three weeks since we reported Central Equity founders, the Kutner and Wilson families, paid Region $20.4m for regional Victoria’s Drouin Central.
That result, reflecting a 5.77pc return, fell short of the $21.9m June, 2023, book value which assumed a five pc capitalisation rate.
The manager also last month divested Melbourne’s Wyndham Vale Square, held in the Metro fund with GIC, for $25.1m.
Sydney listed Region was formerly known as Shopping Centres Australia Property Group or SCP.
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