Four small retail investments have sold for a total of over $90 million.
In the biggest deal, SCA Property Group has settled the Epping North Shopping Centre, north of Melbourne, for $35 million to a trust majority controlled by GIC.
The price, based on a valuation, reflects an impressive capital gain; SCA paid Woolworths’ development arm Fabcot $20.5m for the then-new asset in 2012.
On 1.43 hectares at the north west corner of Epping Road and Lyndarum Drive, it contains 5378 square metres – anchored to Woolworths – and 14 specialty stores.
There are also 193 car parks.
The deal comes a week since we reported SCA paid Centuria managed Primewest $180m for five small shopping centres, in Queensland, South Australia and Western Australia.
Bitternfields doubles since 2015
Meanwhile at Bittern, 80 kilometres south of Melbourne, the Bitternfields Shopping Centre has traded for c$12m to a Chinese investor.
Completed 10 years ago, replacing the Bittern General Store and a neighbouring dwelling – all up a 5534 sqm site – the asset contains an IGA, 11 specialty stores and 61 car parks.
The seller paid Hugh Paton $6.32m, reflecting a 13.8 per cent yield, in 2015.
The latest off-market sale reflects a 4.1pc return.
Offshore investor snares Chippendale strata
In a third deal, Fortius Funds Management and SC Capital Partners have sold a retail component of their Central Park project, in Sydney’s inner-west Chippendale, for c$26m, reflecting a 5.4pc fully let yield (story continues below).
Known as Central Park Duo, at 38 Broadway, the offering contains 1090 sqm, configured as eight tenancies.
Again, the buyer is Asia-based.
Whistle sells again
At Gladstone, meanwhile, Whistle Funds Management has offloaded the Tannum Central Shopping Centre for $18.5m, reflecting a 4.9pc yield.
The same vendor recently divested the Highfields Plaza, near Toowoomba, and a freestanding Woolworths at Narrabri, in New South Wales, for similarly low returns of 4.4pc and 4.86pc respectively.
“Our group investment strategy has been to invest in daily-needs retail assets in counter-cyclical markets,” managing director Andrew Vize said.
“With these divestments we sought to capitalise on the current favourable market conditions crystalising significant value uplift in addition to strong income through the holding period of each fund [which held them],” he added.
With 4403 sqm, anchored by a Coles and with 14 specialty stores, the complex was developed in 2004; it services the Tannum Sands precinct, and Boyne Island, 25 kilometres south of Gladstone.
Whistle picked it up in 2011.
Savills’ Peter Tyson and John Tyson sold it this time around. JLL’s Tom Noonan, Stuart Taylor, MingXuan Li and Jarrod Herscu brokered the Bittern deal.
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