This article is from the Australian Property Journal archive
ABACUS Property Group and Zenonos Group have bought Lutwyche City neighbourhood shopping centre in Brisbane for $65 million, excluding transaction costs.
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Federation Centres sold the property and the sale price represents a 13.5% premium to book value and reflects $3,450 per sqm.
“The sale is part of our ongoing strategic review of the portfolio,” Federation Centres CEO Steven Sewell said.
The four-level enclosed neighbourhood shopping centre in Lutwyche is located 5km north of the Brisbane CBD.
The 18,929 sqm shopping centre has 12,103 sqm of gross lettable area (GLA) anchored by Coles and Aldi supermarkets, two mini majors and approx 5,659 sqm of specialty GLA, along with 812 car parks.
The centre also has 6,441 sqm of office space and an adjacent freestanding 384 sqm childcare facility. The shopping centre is currently approx 90% occupied and has a weighted average lease expiry of over 5.3 years.
Under the terms of the venture, Abacus will fund 75% of the equity and Zenonos will fund the remaining 25%. Abacus will provide the property, asset and development management services to Lutwyche City.
“We are pleased to access another strong core plus opportunity. The property is a strong asset acquired on an attractive rate per square metre and an asset that offers a number of value add projects that will increase income over time,” Abacus CEO Dr Frank Wolf said.
The sale was negotiated by Savills` Peter and Jon Tyson.
Tyson said Lutwyche City was transacted after a formal marketing process in May this year and he attributed the strong result to the strategic inner-city address.
“The EOI campaign generated over 160 separate enquiries from domestic and off shore buyer groups and resulted in offers from 13 separate groups. The transaction is another indicator of the buoyant property market.
“Large scale retail assets this close to the city are typically very tightly held and keenly sought,” Tyson said.
The sale is conditional on Foreign Investment Review Board approval.
Australian Property Journal
