This article is from the Australian Property Journal archive
SENTINEL Property Group has offloaded the Tuggeranong Homeworld retail centre in Canberra for $46 million – almost 50% more than what the syndicator paid for the asset eight years ago.
Located in Greenway, in Canberra’s south, Tuggeranong Homeworld’s major tenants including the federal government, Aldi, Dan Murphy’s, Petstock, Supercheap Auto and PJ O’Reilly’s Authentic Irish Pub. It sold to a private investor on a yield of 7.55%.
The single-level 12,228 sqm neighbourhood centre with attached office incorporates 25 specialty tenancies and six major tenancies, and has 333 car parking spaces.
The deal was negotiated by Sam Hatcher and Nick Willis of JLL.
Tuggeranong Homeworld was Sentinel’s first property in the nation’s capital when it was purchased in July of 2014 for $31 million, and was held in a single-asset trust.
Sentinel CEO, Warren Ebert, said it had delivered a net distribution for investors upon the sale of 11.25%.
“The Sentinel Tuggeranong Retail Trust has continually delivered for investors over the past eight years,” Ebert said.
“While Tuggeranong Homeworld has been an excellent asset and we have been able to add value to the centre such as an upgrade of the Aldi supermarket, we received a good offer for the property.
“The decision to sell is always based on Sentinel’s strategy of buying at an opportune time and then selling based on our view of the market.”
Sentinel’s Industrial Trust netted a $40 million-plus profit from the sale of a waterfront bulk storage TradeCoast facility in May, after less than five years of ownership of the property.
Earlier this year, Sentinel acquired Darwin’s Casuarina Square from GPT Group for $418 million, and is also in the process of acquiring Caneland Central Shopping Centre in Mackay in a near-$300 million deal. Like Casuarina Square, it is a regional retail centre dominant in its market and has development and value add upside.
Sentinel’s remaining asset in Canberra is Scarborough House, an office tower in the Woden Town Centre occupied almost entirely by the Department of Health, that it purchased last year for $83 million.
Most recently, Sentinel picked up another Townsville property for the Industrial Trust, taking its holdings in the town to more than $100 million.
