Vicinity acquires Harbour Town stake

Co-owner Lewis Land controls a development site (top, left) neighbouring the 22.3 hectare Harbour Town.

Lendlease has sold its half stake in Gold Coast’s Harbour Town shopping centre for $358 million.

Vicinity Centres is the buyer.

Reading Cinemas is one of Harbour Town’s two anchors.

Lewis Land Group – which has a pre-emptive right to match the terms of the sale – holds the balance.

It is also the manager.

The deal comes four months since Gold Coast’s Pacific Fair was listed carrying c$1.8 billion price hopes.

That asset is held in equal parts by AMP Capital and the Dexus managed AMP Capital Diversified Property Fund.

Last week we reported Greenpool and Qualitas paid Perron Group $128m for a half stake in the Runaway Bay Centre, north of Harbour Town.

Harbour Town Gold Coast

On 22.3 hectares at Biggera Waters, about nine kilometres north of Surfers Paradise, Harbour Town contains c55,693 square metres of lettable area leased to about 216 businesses.

Readings and Woolworths are the anchors.

There are also 17 mini-majors, seven kiosks, a pad site occupied by McDonald’s, seven office suites and 3022 car parks.

The factory outlet focused asset was last refurbished in 2016.

Three years ago, a dining precinct was added and, shortly after, the centre was rebranded Harbour Town Premium Outlets.

Lewis Land, which developed the complex in 1999, retains a neighbouring parcel which has in recent years been the subject of a mixed-use village, with medium density residential.

The Lendlease sale is being struck at a core capitalisation rate of five per cent (story continues below).

The Harbour Town Eats dining precinct was added three years ago.

Following settlement, Vicinity will be responsible for Harbour Town’s leasing; it is presently 1.3pc vacant.

Vicinity will take over leasing

Lendlease held Harbour Town in its Australian Prime Property Fund.

It acquired its interest in two stages – picking up its last 25pc share in 2018 for $180m from Future Fund.

Harbour Town contains 55,693 square metres of lettable area.

“APPF Retail received strong interest from prospective buyers for its stake in Harbour Town Gold Coast, which was attractive due to the tightly held nature of the retail asset mall sub-sector, surrounding population growth and tourist spend during normalised trading conditions,” the vendor said in a statement.

“This is a very good outcome for our investors and is in line with the fund’s capital management strategy that includes providing liquidity to our investors who have sought it,” Lendlease’s managing director, Investment Management, Scott Mosely added.

“APPF Retail is focused on executing its urban growth centre strategy, incorporating mixed-use placemaking to create vibrant precincts that supports changing consumer needs around lifestyle, technology and shopping,” according to the executive.

“The delivery of the fund’s urban growth strategy has been accelerated, with recent examples including the opening of the high ropes adventure course at Sunshine Plaza…and approval for a seven storey office development within childcare facilities at Lakeside Joondalup (Western Australia).

CBRE’s Simon Rooney with McVay Real Estate’s Sam McVay and Dan McVay brokered the Harbour Town sale.

The deal comes a day since we reported Lendlease sold Geraldton’s Northgate Shopping Centre to Primewest for $71.23m.

In April, APPF divested CS Square, in Melbourne’s Caroline Springs, to private investor Colin DeLutis for $136.5m.

Last year the fund listed, but then withdrew, Craigieburn Central, again in the Victorian capital, and a half-stake in Brisbane’s c$1.7b Westfield Carindale.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of