Record price paid for Tasmanian mall
The only neighbourhood shopping centre south of Hobart – Channel Court at Kingston – has sold for a state record price for a retail asset – $82.5 million.
Adelaide investor Tony Moro, director of 12 year old Moro Capital, is the buyer, settling on a 7.5 per cent fully let yield.
Elanor Investors Group (ENN) was the seller.
The ASX listed fund manager acquired the mall early last year with its takeover of Challenger’s Australian real estate management platform.
Challenger paid the local Behrakis family $76m in 2016.
Coincidentally that result also set a record for a Tasmanian retail asset.
Channel Court
ENN valued at Channel Court at $87m at June 30, 2023 – a drop of $2m on its peak the year earlier.
Developed in 2006, it contains 25,434 square metres with two anchors, Big W and Woolworths, and 84 specialty stores – some 15, cafes – as well as an Anytime Fitness, Australia Post, Medicare, Services Australia and range of banks.
The average yearly footfall circles three million contributing to a moving annual turnover of $111m including GST (story continues below).
The site spreads 3.62 hectares.
The deal comes a week since we reported ENN, on behalf of the Elanor Retail Property Fund, sold Glenorchy Plaza, north of Hobart, for a near five per cent drop on book value.
Elanor sheds another Hobart mall
In a growth corridor, Channel Court’s catchment increased 11.8pc between 2016-2021, according to selling agents, JLL’s Nick Willis and Sam Hatcher, who said seven offers came in.
“Channel Court presented a unique offering to the market supported by macro-fundamentals, investors were further attracted to the relatively low average rents, some 43pc below the benchmark,” colleague, analyst, Nathan Lin, added.
“This combined with zero vacancy and occupancy costs of approximately seven per cent reinforced the long-term income growth trajectory of the asset,” according to the executive.
Kingston is 12 kilometres from the CBD.
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