This article is from the Australian Property Journal archive
A SYDNEY-based syndicate has snapped up a Townsville sub-regional centre for $47.25 million from Stockland and AMP.
The convenience-focused Coles Kmart Plaza Townsville traded on a fully leased yield of 5.46%. It comprises a Coles, Kmart, a mini major, 21 specialties, two kiosks and two pad sites over 13,892 sqm, on 4.2 hectares of land five kilometres south of Townsville Airport.
The site at Nathan Street and Ross River Road is exposed to approximately 20.2 million vehicles each year. The property provides 731 at-grade car parks and has a weighted average lease expiry by area of 4.6 years.
It is positioned diagonally opposite the regional shopping centre Stockland Townsville, also co-owned by Stockland and AMP Capital, and where AMP Capital is shopping around its half stake with hopes of about $150 million.
Stockland picked up Coles Kmart Plaza 10 years ago from Centro for $36.5 million.
The buying syndicate is led by Mark Slot and Benlee Property Trust’s John Dalley.
Jonathan Fox of Stonebridge and Jacob Swan of JLL managed the expressions of interest campaign.
Fox said the strong result reinforces the strength of demand for convenience-based assets.
“Interstate buyers accounted for the significant majority of offers, despite being unable to inspect due to COVID lockdowns. The capital pool is deep for assets of this scale, creating highly competitive sale processes which are resulting in yield compression and limited conditionality.”
Swan said the strong performing Coles and Kmart stores underpinned investment demand for this asset, with groups also attracted to the opportunity to add-value via specialty leasing and remixing.
