This article is from the Australian Property Journal archive
CANUTE Investments has sold two south east Queensland retail centres to Westlawn Property Trust for a total of $45 million, as part of the family-owned vehicle’s $140 million portfolio sell-down of assets Western Australia and the sunshine state.
The flagship property trust of Gold Coast-based Clarence Property, Westlawn has settled on is acquisitions of the Woolworths Ormeau Centre for $29 million and Logan Village Shopping Centre for $16 million.
Both centres are located residential growth corridors are anchored by 20-year leases to Woolworths plus eight five-year options, with the 4,602 sqm Ormeau Centre boasting six specialties including a medical and pharmacy tenant, with a 12.7 year weighted average lease expiry and trading on a yield of 6%.
Logan Village measures 3,174 sqm has four specialties and a 13.19-year WALE.
Canute Investments revealed plans in August to offload $140 million worth of office buildings, shopping centres and residential sites across Western Australia and Queensland.
Westlawn’s portfolio now totals 21 retail, commercial, industrial and development properties worth beyond $400 million, having opened the year with just over $300 million in assets. Clarence Property sought to raise $20 million for the trust in February as it underwent a staged acquisition of the $70 million, 136-lot Yamba Quays, which is the last canal-front community in New South Wales following 1996 state government legislation banning further canal development.
Peter Fahey, Clarence Property’s managing director, said the annuity style core retail property were a great fit for Westlawn Property Trust’s conservative investment model.
“This workbook includes a Woolworths-anchored centre Westlawn is currently developing in the Clarence Property-owned Epiq community in Lennox Head, with plans to open for trade in July 2020.
“Our recent purchases demonstrate our belief in the neighbourhood centre retail model, which focuses on core retail, with the potential to add click-and-collect services as online shopping gathers momentum.
“Neighbourhood retail centres also provide a social function for the community, without the risk associated with big box retail found in larger centres.
CBRE’s Joe Tynan and Michael Hedger brokered the deal through an expression of interest campaign, which attracted 146 enquiries and q2 bids from local and offshore private investors and syndicates.
Westlawn Property Trust has currently provides a gross distribution in excess of 7% per annum.
Clarence Property recently bought a multi-tenanted industrial facility in Wacol for $7.655 million to add to the Westlawn trust. The 1.5-hectare site has five buildings of a total 6,424 sqm occupied by seven tenants.
