This article is from the Australian Property Journal archive
ANOTHER shopping centre asset has changed hands, with Iwan Sunito’s One Global finalising the acquisition of The Grand Shopping Centre in Eastlakes from Crown Group.
The 2021-developed shopping centre will be rebranded to One Global Centre and comprises more than 3,000sqm of retail space with 16 outlets including a large format ALDI, a Woolworths Metro offering and a range of specialty stores.
One Global reportedly paid $19.5 million, on a yield of 7% for the asset in Crown Group’s The Grand Residences Eastlakes. The sale is part of the asset carve up at Crown Group after co-founders Iwan Sunito and Paul Sathio had a high profile falling out.
Sunito and Sathio fell out over differences in business strategy, resulting in Crown Group’s $500 million Sydney apartment retail complex Mastery placed in receivership. In August last year Sathio’s PNR International lodged court action to have the Crown Group wound up after attempts at an out-of-court resolution failed. The pair had agreed to split the group’s property portfolio but this did not proceed, and Sathio sued Sunito.
“We have now finalised the leasing agreement to three new tenants with the further four to go and will complete the leasing program for One Global Centre Eastlakes,” said Iwan Sunito, group CEO and chairman at One Global Capital.
“We expect to grow the value of this retail investment to over $35 million within a year once the full plan has been implemented.”
The centre provides 6.6% net passing yield and once fully tenanted will provide One Global Capital with 10% net yield.
“This acquisition will bring One Global Capital’s investment asset value to be in excess of $500 million. We are at the early stage of growth phase of the company. I am very happy with the strategic acquisition that I have built up in the last two years.”
“This significant acquisition, in addition to the $120 million One Global Resorts Green Square, forms part of a strategic seven-year vision to go public while growing the ‘recurring income’ of the company and building its mixed-use development capacity.
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.
