This article is from the Australian Property Journal archive
SUNSUPER has offloaded the sub-regional shopping centre, Marketown in Newcastle, to acquisitive SCA Property Group for $150.5 million, below the $163 million price it paid only four years ago.
SCP has acquired Marketown from AMP Capital Investors with the deal reflecting an initial passing yield of 5.6% and an implied fully let yield of 6.1%.
AMP bought the asset on behalf of SunSuper in July 2017 from property developer David Boyer’s Cartier Group for $163 million.
Marketown consists of two centres, East and West totalling 26,620 sqm of gross lettable area and 900+ spaces car park.
The East centre is anchored by Woolworths, Big W and Dan Murphy’s and has 28 specialty stores. The West centre is anchored by Coles and Officeworks and also has 28 specialty stores.
The centre boasts a Moving Annual Turnover (MAT) of $187+ million.
The acquisition continues SCA’s buying blitz since the group revealed it has bounced back strongly from COVID-19.
Last week SCA acquired Marketplace Raymond Terrace in the NSW Hunter Region for $87.5 million from a family owned company. Its other acquisitions this year include follows the $44 million purchase of Mount Isa Village from ISPT; the Cooloola Cove Shopping Centre in the Gympie region from Altor Capital; the triple supermarket-anchored Auburn Central in Sydney west for $129.5 million, on an implied fully let yield of 6.0%, as well as Katoomba Marketplace in the Blue Mountains for $55.1 million, representing an implied fully let yield of 5.6%, and Centre shopping centre in the Northern Territory for $33 million.
Neighbourhood shopping centres are on top of investors’ wish list, earlier this month IP Generation bought a portfolio of properties from Paul Lederer for $300 million on a 6% yield.
The latest PAR Group research shows the yield spreads between fashion oriented sub regional centres and neighbourhood centres have widened to their biggest gulf in 10 years.
Meanwhile this is AMP Capital’s second major divestment this week after selling three offices to funds manager EG for $450 million. AMP bought the properties separately in 2017 for approximately $575 million on behalf of insurer Swiss Re.
