This article is from the Australian Property Journal archive
PROPERTY fund manager Haben has taken full control of the Stockland Townsville shopping centre, acquiring the remaining half-stake and management rights for $123.5 million.
The price is a 9.5% discount to June’s book valuation, and the deal follows Haben picking up an initial half stake in September for $115 million, at an 11.5% discount. Both stakes were bought on yields of about 8%, and Haben will also take on two adjoining development sites.
The $238.5 million paid in total is a far cry from the shopping centre’s valuation of more than $400 million in 2017.
Transaction volumes of commercial property in Australia sank to their lowest level for a September quarter in more than a decade, with a “fog” on pricing expectations between buyers and sellers, as well as economic and geopolitical uncertainty, hampering deal activity.
Located in the heart of Townsville, the 45,021 sqm centre underwent a $180 million redevelopment and expansion in 2012. It is anchored by a full-line Myer – the only department store within a 345-kilometre radius – and Woolworths and Big W. There are seven mini-majors including Rebel, Priceline, Country Road, Cotton On Mega, The Reject Shop, and Best & Less, a dining precinct and more than 130 specialty stores.
Haben bought the second half stake from Dexus, which was formerly held in the AMP Capital Shopping Centre Fund.
“Haben is pleased to now own and control a 100% interest in Stockland Townsville, allowing our business to have full control and implement our bespoke asset management strategies for the centre,” said Haben’s managing director, Ben Finger.
“We have been attracted to Townsville due to its robust and diverse economy underpinned by the federal government’s commitment to relocate a significant portion of the military to the region. This underpins the city’s bright and continued growing future.”
JLL negotiated the sales of both tranches.
Shopping centre sales picking up
Shopping centre sales are starting to pick up amid the pre-Christmas rush, according to The Data App, albeit off a very low base. The research firm’s director, Rob Ellis, said there are “few signs yet that a meaningful upswing is unfolding”.
This week, the Charter Hall Retail REIT offloaded $225.5 million worth of shopping centres in Adelaide’s Morphett Vale and Rosebud, on the edge of Melbourne, in line with book valuations following unsolicited off-market offers.
Southgate Square in Morphett Vale has traded for $91 million. The 15,835 sqm centre is anchored by Aldi, Coles, and Target, and underwent a refurbishment in 2016. It has a weighted average lease expiry (WALE) of 4.9 years, and has 753 car parks.
It also divested the recently refurbished Rosebud Plaza for $134.5 million. Anchored by Coles, Kmart and Woolworths, the 23,333 sqm Mornington Peninsula asset has over 60 specialty retailers including national brands such as Sussan, Jay Jay’s, Specsavers, Williams and Bonds, and a 4.0-year WALE. It has 1,070 parking spaces.
