This article is from the Australian Property Journal archive
CFS Retail Property Trust Group has offloaded Post Office Square in Brisbane's CBD for $67 million, a price below the current book value of $71.1 million.
The sale is the largest Brisbane CBD retail property transaction since May 2012 and it was snapped up by a private investor.
Post Office Square comprises total gross lettable area of 1,756 sqm and includes a lower-ground level retail food court and six-level 316-bay basement car park. The shopping centre has 29 specialty tenants and six ATMs. The car park accounts for approximately 50% of total gross income.
CFS CEO Angus McNaughton said the sale is in line with the trust’s strategy of divesting non-core assets.
“At our 2014 annual results in August, we announced that we were planning between $100 million to $200 million of non-core asset sales over the next two years.
“We continue to look for opportunities to divest more non-core assets and redeploy capital into value-enhancing opportunities such as acquisitions or developments,” McNaughton said.
JLL’s head of retail investments Australia Simon Rooney negotiated the sale.
“It represents the largest sale of a retail asset in the Brisbane CBD since May 2012, when a half-share in Myer Centre Brisbane was sold for $366 million to ISPT through JLL,” Rooney said.
“The Brisbane CBD has entered into the next phase of revitalisation, with development-led opportunities helping to invigorate the CBD retail market. The redevelopment of Wintergarden, which completed in 2012, was the last major project to complete, while a full refurbishment of Broadway on the Mall is currently under construction and is expected to complete in 2015.
“ISPT is also undertaking a refurbishment of 155 Queen St, located next to Wintergarden, and Colonial has plans to redevelop the Myer Centre. The refurbishment and rebranding of the Lennons Hotel – now NEXT Hotel – completed in early October and houses Australia’s first Forever 21 store,” he added.
“We continue to see very high levels of investment activity in the retail market. Queensland has been one of the most active retail markets over the past two and half years, with over $3.8 billion transacting since the start of 2012,” Rooney said.
This is the fourth major retail property transaction in QLD in a week. Yesterday Stockland sold a 50% stake in the Townsville shopping centre to AMP Capital Shopping Centre for $228.7 million.
And last week Stockland acquired a 50% stake in Sugarland Shoppingtown in Bundaberg from an AMP Capital managed fund for $59.25 million, whilst Federation Centres teamed up with TIAA Henderson Real Estate to buy the $416.25 million Mt Ommaney Centre, a regional shopping centre 14km from Brisbane’s CBD.
Australian Property Journal
