This article is from the Australian Property Journal archive
CENTURIA has launched a new subregional shopping centre wholesale fund, securing Manning Mall in Taree for $34.85 million at a 62% discount to replacement cost.
The new single-asset, closed-ended wholesale Centuria Manning Mall Fund (CMMF) will provide an initial five-year term and is expected to be offered to wholesale investors from early November, with a forecast average distribution of 8.00% per annum.
The fund also has a targeted equity raise of circa $21million with investments starting from $100,000.
“Manning Mall provides a counter-cyclical investment opportunity for our broad network of wholesale and high net worth investors, aiming to capture the strong investment appetite we experienced with our over-subscribed Centuria Halls Head Central Fund earlier this year,” said Jason Huljich, joint CEO at Centuria.
“Through Centuria’s proactive inhouse management capabilities, we aim to upgrade the Centre and capture positive rental reversion and reposition the asset’s tenancy mix to better align with local customer demographics and its forecast expanding population.”
Elanor Investors Group listed the shopping centre back in July through James Wilson and Ben Wilkinson from Colliers, with price hopes north of $35 million.
Manning Mall, located on a 29,740 sqm site at 81 Manning Street, is anchored by a high-performing Coles Supermarket that brings in annual sales well in excess of the chain’s store average with long-term lease expiry through to 2034.
The centre also comprises a Target, 27 specialty stores, four kiosks and 422 on-grade car parks.
With ASX-listed and national retailers making up 64% of asset’s gross annual income, with a 4.95-year WALE and 94% occupancy.
The asset will also benefit from the forecasted population boost in Taree, with the mid-north coast NSW location set to see a circa 25% increase by 2041.
With retail expenditure also anticipated to increase at an average rate of 3.7% per annum to reach $1.59 billion.
The retail property sector is heating up on a relative value basis with yield expansion milder than other core commercial property markets, steady vacancies and occupancy costs sitting lower than before pandemic. There is also a lack of new shopping centre supply, but buyers and sellers are beginning to cut deals again.
Recent months have seen several shopping centre assets swap hands, with Scentre Group and Barrenjoey confirming their $174.75 million purchase of a half-stake in Adelaide’s Westfield West Lakes, following its June purchase of a 50% interest in Westfield Tea Tree Plaza for $308 million with Barrenjoey.
While Vicinity Centre nabbed a 50% stake in Lakeside Joondalup at a hefty discount to the asset’s peak value, and Hawaiian took full control of Claremont Quarter.
JY Group is also expanding its Australian shopping centre portfolio with its $195 million acquisition of a half-stake in Westfield Whitford City from Singaporean sovereign wealth fund GIC, followed shortly by a 50% interest in Sydney’s Warriewood Square for $135.5 million.
ISPT recently put up for sale a 50% interest in the $276 million Cranbourne Park Shopping Centre in Melbourne’s south-east corridor.
While in Queensland, the state’s biggest retail transaction to date in 2024 came as e Dexus Wholesale Property Fund and Melbourne-based fund manager Fawkner traded the Willows Shopping Centre in Townsville in a $212 million deal.
Settlement of Manning Mall is anticipated for December 2024.
