This article is from the Australian Property Journal archive
SENTINEL Property Group has sold the Nowra House & Home centre, generating a combined $89.05 million from the divestment of three large format retail assets along the eastern seaboard in recent months.
Last year the Brisbane-based group sold the Dandenong Home Quarter in Melbourne’s south-eastern suburbs and the Ipswich Homebase to property fund manager Primewest for $68.75 million.
The latest deal has seen the single-level Nowra House & Home offloaded to a private investor for $20.3 million, two and a half years after it purchased the 1.87-hectare site for $15.3 million.
Stonebridge’s Phil Garland and William Blanch negotiated the deal.
The Nowra site has eight national and government tenants including Spotlight, Pillow Talk and BCF over a gross lettable area of 8,096 sqm, as well as 160 car spaces. It has a 230 metre frontage and is opposite Harvey Norman and Supercheap Auto.
“These sales have been excellent results for our investors and the decision to sell is consistent with Sentinel’s strategy of buying at an opportune time and then selling based on our view of the market,” Sentinel’s managing director, Warren Ebert said.
“The large format retail sector continues to perform, particularly in high-growth, well-established locations such as Ipswich, Dandenong and Nowra. The fact that these centres maintain full occupancy underwrites the interest from high-profile retailers to have exposure in this style of asset, in these locations,” he added.
Dandenong Home Quarter was built in 2012 on a 31,780 sqm site at 55-67 Frankston-Dandenong Road and includes The Good Guys, Supercheap Auto, Fantastic Furniture, Rebel Sport and Officeworks, with a WALE by income of 4.5 years.
Sentinel had held Ipswich Homebase since February 2013, having paid $23.5 million for 2.68 sqm site. Its divestment brought in $36.25 million as part of the deal with Primewest for an internal rate of return of 26.76% for the Sentinel Ipswich Homemaker Trust.
Among its ten tenants are Fantastic Furniture, Spotlight, Forty Winks, Chemist Warehouse, T.K. Maxx and an IGA supermarket across a gross lettable area of 12,903 sqm and a 4.47-year WALE by gross passing income. It also has more than 350 parking spaces.
Primewest followed the purchase of the Dandenong and Nowra assets with the $45 million acquisition of the single-level, 15,886 sqm West Gosford Hometown large format retail centre at 356 Manns Road.
Built in 2003, it is anchored by a Super A-Mart and has 15 tenancies, including a Petbarn and Paul’s Warehouse and offers three parking spaces.
Australian Property Journal
