This article is from the Australian Property Journal archive
BILLIONAIRE and discount store magnate John Van Lieshout has paid a cut price of $180 million for the Centro Surfers Paradise shopping centre.
Van Lieshout who built his empire through discount furniture store Super A-Mart has been confirmed as the buyer of centre from the Centro MCS 11 syndicate.
The price reflects a price of $7,763 per sqm. The deal was negotiated by Jones Lang LaSalle.
The two level centre comprises 23,186 sqm and 435 car spaces and is anchored by a Woolworths supermarket and its discount department store Big W; as well as 7-Eleven; Athlete’s Foot; Australia Post; Australian Shooting Academy; and Baskin-Robbins.
Van Lieshout has paid less for the property than Centro which bought it from MCS Property Group in 2003 for $193 million.
The price is also a discount to Centro MCS 11’s December 31 2009 valuation price of $202 million.
The syndicate currently has a gearing of 33.5% and proceeds from the sale will be used to repay $71.41 million loan facilities which mature in December 15 2011.
The centre was put on the market earlier this year because unitholders in the syndicate elected to exist the fund. As a result, Centro Surfers Paradise was listed for sale.
Following the sale, all syndicate debt will be repaid, net proceeds will be distributed to investors and the syndicate wound up.
Centro warned the unitholders that was no guarantee that a buyer would pay the current valuation of $202 million and the net proceeds returned to investors may be greater or less than the current NAB of $2.42.
Earlier this month, the Marriott hotel on Surfers Paradise which forms part of the Centro Surfers Paradise was sold to Singapore hotelier Hotel Grand Central for $47 million.
Australian Property Journal
