This article is from the Australian Property Journal archive
MIRVAC has sold three offices in Sydney and Melbourne and a sub-regional shopping centre in Queensland for $293 million.
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The latest transactions take the total asset sales for the financial year to date to $405 million.
The properties were sold to separate parties and they were 210 George St and 220 George St Sydney; 191-197 Salmon St Port Melbourne; and Hinkler Central in Bundaberg, QLD.
Together with the sale of 54 Marcus Clarke St and 60 Marcus Clarke St in Canberra. City Central Plaza, Rockhampton, the five office assets were sold at an 11.1% premium to previous book value whilst the two retail assets were sold at a 10.7% premium to previous book value.
“The disposal of these assets is in line with our target to divest between $200 million and $400 million of assets in FY15, and further improves the quality of the investment portfolio following a number of acquisitions and divestments over the past 24 months,” Mirvac’s CEO Susan Lloyd-Hurwitz said.
QIC emerged as one of the buyers of the Hinkler Central sub-regional shopping centre in Bundaberg for $110 million.
The sale price reflects a premium to the book value of $99 million as at December 2014. The sale was brokered by Colliers International`s Lachlan MacGillivray and Stewart Gilchrist of Colliers International and Sam McVay and Dan McVay of McVay Real Estate.
Colliers head of retail investment services Lachlan MacGillivray said the high quality asset drew strong interest from both local and international investors, resulting in a highly competitive sale process for the well-located centre in the growing regional hub of Bundaberg in Queensland.
“The demand for quality sub-regional retail assets combined with the lack of product in 2015 will lead to further cap rate compression for quality centres like this.
“This modern, well-presented centre enjoys exceptional productivity with levels well above Urbis benchmarking, which proved highly attractive to investors,” he added.
Hinkler Central comprises 20,750 sqm of lettable space and is anchored by two major supermarkets and a discount department store, alongside over 75 other specialty stores. There is also on-site parking for 1,070 vehicles.
McVay real Estate`s Sam McVay said high quality sub-regional assets in Queensland rarely come on the market.
“Only six such centres have traded in the sunshine state over the last two years, with only three of those offered in 2014. So a quality asset like Hinkler Central is always going to draw strong interest,” he said.
In 2015 to date, only six sub-regional centres have transacted to a total value of $570m, which points to a major undersupply of product.
Investment activity in the sub-regional sector has been strong over the past few years with sales worth $2.24 billion from 26 transactions recorded in 2014; and sales worth $2.09 billion from 31 transactions in 2013. Sub-regional shopping centres accounted for 34% of all retail sales in 2014.
Australian Property Journal
