Stevens Group sells convenience centre on fund-through basis
Stevens Group has sold a shopping centre nearing completion at Googong, 16 kilometres south east of Parliament House, just outside the Australian Capital Territory.
The Googong Convenience Centre is collecting $28.5 million – a 5.76 per cent capitalisation rate – from a Queensland investor.
Stevens paid Mirvac and Peet $8.75m for the 1.18 hectare B2 Local Centre zoned site making way for the complex, in mid-2023; it came permit-ready and pre-committed.
Colliers’ James Wilson, Matthew Winter and Ben Wilkinson managed the on-sale, via an expressions of interest campaign closing September and formalised in November.
Mirvac and Peet are planning to accommodate some 18,000 people in c5072 dwellings at their 780ha Googong estate, which is being developed in stages over two decades.
Fund-through deal
At 113 Glenrock Drive, predominantly facing Wellsvale, Googong Convenience Centre contains 2804 square metres, with commitments by McDonald’s, KFC, 7-Eleven, Aspire Learning and The Reject Shop (story continues below).
The weighted average lease expiry upon it opening will be 14.47 years.
“This transaction highlights the renewed demand for fund-through transactions secured by national tenants on long leases, offering significant depreciation benefits,” Mr Wilson said.
“With limited new developments being delivered and further clarity surrounding debt markets, private investors continue to bid aggressively for core non-discretionary retail product, driving strong pricing,” he added.
The area’s catchment is forecast to grow 6.1pc per annum until 2035, according to the executive.
Moving annual turnover retail spending in the area is also set to rise over the period – by 11.2pc pa, he said.
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