This article is from the Australian Property Journal archive
STOCKLAND is capitalising on the appetite for retail properties by selling the Stockland Cairns sub-regional shopping centre, which is expected to sell for more than $230 million.
JLL’s Simon Rooney has been exclusively appointed to sell the prized asset.
Stockland Cairns is a dominant 49,532 sqm, triple DDS anchored sub-regional shopping centre comprising a Big W, Target, Harris Scarfe, Coles, Woolworths, BCC six screen cinema complex, in addition to 10 mini majors, 110 specialty tenancies and kiosks.
The centre draws from an extensive and high growth trade area with 247,030 residents within the total trade area, including 168,810 residents in the main trade area.
Stockland Cairns benefits from its strategic position at the gateway to the southern growth corridor of the Cairns region, with the primary trade area expected to grow by 2.4% p.a. to 2031, significantly above the Australian average of 1.5% p.a.
Rooney said investors continue to see long-term value in the Queensland retail market.
“We expect Stockland Cairns will be highly sought after given the high level of demand for major retail assets in Queensland and the shortage of opportunities to acquire major assets.
“There have been very few opportunities historically to acquire a 100% interest in a major, high quality retail asset over $200 million in Queensland. We have recorded just three transactions above this threshold in the last 10-years. One of those transactions occurred directly off-market and one was part of a national portfolio,” he added.
“Investment into retail assets in Queensland continues to strengthen from year to year. Total transaction activity has risen from $1.4 billion in 2013, to $1.7 billion in 2014 and to a record-high of $2.3 billion in 2015.
“A number of institutional retail landlords accumulated assets in Queensland in 2015 in order to build exposure to the state. Blackstone acquired Westfield Strathpine as part of a wider portfolio transaction for $655.5 million, QIC acquired Domain Central Homemaker Centre (approximately $130 million) and Hinkler Central ($110 million) and LaSalle Investment Management acquired three retail assets totalling $171 million,” he continued.
“The resurgence in inbound tourism, which follows the depreciation in the AUD, is supporting the local economies of major tourist regions such as Far North Queensland. Overseas visitor arrivals have increased by over 7% year-on-year, nationally, which supports a positive outlook for retail trading conditions.
“The Queensland retail market offers an attractive long-term investment proposition, with retail turnover growth forecast to outperform the national average over the next decade, improving occupancy levels and a boost to retail trading conditions in the short to medium term from strengthening tourist arrivals,” Rooney said.
Stockland Cairns is for sale via an international expressions of interest (EOI) campaign, closing on Thursday, 31 March 2016.
Australian Property Journal
