This article is from the Australian Property Journal archive
CENTRO Retail Australia (ASX: CRF) has bought the Centro Toormina shopping in Coffs Harbour NSW for $65.5 million.
CRF has bought the centre from the Centro MCS 16 syndicate.
Centro MCS executive general manager syndicates Gerard Condon said the price was in line with the June 30 2012 valuation and 8.3% above the highest received from a third party from the March 2012 sales campaign.
Opened in 1987, Centro Toormina comprises 21,337 sqm of space and 918 car parking spaces and is anchored by a Kmart discount department store, Coles and Woolworths supermarkets and 57 speciality retailers.
Condon said whilst the sale to CRF is a related party transaction, the board considered the sale to be in the best interests of investors because the price offered was substantially in excess of that received during the most recent sale campaign and it saved approximately $650,000 in sale agents commission.
“Any alternative strategies were likely to take more time to complete and incur further transaction costs with no guarantee of improved value for syndicate investors.
“The syndicate has not distributed since July 2008 and therefore the sale provided long awaited liquidity to investors; and the senior debt facility was due to expire on 14 December 2012 and there was no guarantee an extension would be obtained, possibly leading to a forced sale situation,” he added.
Meanwhile the Centro MCS 34 has had mixed results with its sales campaign which began in late 2011 with the marketing of Port Pirie and Emerald Village.
Condon said Port Pirie has been sold for $20.0 million — 9.1% below the 30 June 2012 book value.
However to date Emerald Village has not been sold and will likely be remarketed for sale during 2013.
Pinelands was marketed for sale throughout October 2012. The highest bidder for the property has now commenced an exclusive due diligence period to further investigate the property acquisition, however, at this stage there is no guarantee the centre will be sold.
Marketing of the remaining properties, Woodcroft and a 50% interest in Emerald Market and Emerald Village will occur during 2013.
“We currently anticipate finalising the syndicate wind up in the 2014 financial year, which we appreciate is a longer sale duration than originally anticipated,” he concluded.
Property Review
