The property was sold at auction through Ray White Rural’s Jez McNamara, who declined to comment on the buyer.
AMP Capital is looking to stamp its authority on Brisbane’s retail property market with the purchase of a $1 billion stake in the Indooroopilly Shopping Centre.
The group, which already manages one of the best shopping centre networks in the country, is believed to be heading the field to buy the Commonwealth Superannuation Corporation’s half stake in Indooroopilly Shopping Centre, marking one of Australia’s biggest shopping centre deals this year.
It is also a sign of confidence in shopping malls, which remain under pressure from the general downturn in retail sales and the looming threat from Amazon as it plans an entry into the Australian market.
The offer of the interest attracted a who’s who of Australian retail property with Scentre, GPT Group and a tie-up between ISPT and Stockland showing interest, as well as local heavyweight QIC and the John Gandel-backed Vicinity centres.
The stake was offered, via Simon Rooney JLL and Lachlan MacGillivray of Colliers International, with valuable management rights attached, and was the first such sale of a super-regional shopping centre in more than a decade.
If AMP Capital is able to finalise a deal, it will have the chance to bolster the performance of the centre, which could be redeveloped in parts and repositioned to also accommodate international retailers that are a feature of the group’s other major centres in Sydney, the Gold Coast, Perth and Melbourne.
Scentre, which has a dominant position in the city, had said would look at the property and is rumoured to have shown interest in buying the entire landmark centre.
It would have held a dominant position in the city but now could face a challenge from AMP Capital that will be looking to revitalise the centre.
Funds manager Eureka Real Assets, which acts as the investment manager for the $41bn super scheme for public servants and the Defence Force, in June began a sale process for the massive 116,000sq m retail complex.
CSC has owned the Indooroopilly Shopping Centre in its own right since 2006, after acquiring an initial interest in 1988. Its annual retail turnover is $667m.
It completed a $450m renovation in 2014 following a 30-month process to expand the centre from 86,780sq m.
It now has two department stores, Myers and David Jones, a Kmart and Target, Coles and Woolworths, a 16-screen cinema and more than 350 shops. The centre’s vacancy rate is less than 1.5 per cent.
Indooroopilly is the pre-eminent centre servicing the inner western and southwestern suburbs of Brisbane and the impending sale will set fresh benchmarks across the sector.
Australia’s shopping centre sector is split between soaring values for key assets and sluggish growth for smaller assets.
The strong result in the race for the CSC’s half-stake in the Indooroopilly bodes well for the valuations on many of best malls held by listed groups.
The Brisbane centre also has significant upside in the medium term as apartments can be developed around it and AMP is pursuing a strategy to build town centres with residential units around is centres in Sydney and Perth.
The parties and agents declined to comment.
Richards family wastes no time with $10m rural property buy
Sunnyside, in the Brisbane Valley, comprises 2340 hectares and 27 dams. Supplied
Queensland-based Rich List family the Richards have snapped up a prime grazing property in the Brisbane Valley for about $10 million.
The dynastic Richards family, estimated to be worth $500 million, is behind the major waste management business JJ Richards & Sons.
The property, on Gatton Esk Road, is one of the Brisbane Valley’s largest cattle properties, just 60 kilometres from Brisbane’s CBD.
Comprising 2340 hectares, the property has 27 dams and is on the south-eastern side of the Brisbane Valley town of Esk.
Land titles records show the property has now settled, with the Richards family buying the property for $10 million, adding another to the family’s collection of rural holdings, which include a 600-hectare holding near Stanthorpe.
The property also has 800 hectares of cultivation traditionally used to grow watermelons and pumpkins, making it ideal for further development for fodder crops or improved pasture.
And neighbours need not be concerned about the confluence of the family’s day job. The property will not be used for any waste management initiatives and solely as an agricultural enterprise.
Dexus Snaps Up Brisbane Audi Centre for $91.2m
Dexus has paid $91.2 million for the property located at 570-586 Wickham Street, realising an initial 6 per cent yield.
The property comprises two adjoining, purpose-built automotive dealerships known as Lighthouse, constructed in 2011, and the Euro Marque building, built in 2006.
The 7,123sq m site has been home to high-end brands such as Audi, Lamborghini, Maserati and Bentley.
Currently, the property features 13,288sq m of office and showroom space across two levels and a hardstand and external area of 2,556 square metres.
CBRE’s Mike Walsh, Peter Court and Tom O’Driscoll, in conjunction with Glen Wright and Nick Spiro of Cushman & Wakefield, were appointed to market the 570-586 Wickham Street property.
Walsh described the deal as a “landmark transaction” for Brisbane’s fringe market.
Nine offers were reported from local and offshore property companies eager to maximise the site’s underlying value.
The site has attracted strong interest due to its future development potential of up to 20-storeys.
An important part of the deal was the lease recommitment last year by the ASX-listed Autosports Group to the end of 2026 plus two five-year options.
Dexus, Australia’s largest landlord, will now collect a net passing income of $5.472 million a year.
Clarence Property Buys Brisbane Shopping Centre for $31.25m
The 2.85-hectare retail complex is home to national retailers including OfficeWorks, Rebel Sport and Good Price Pharmacy.
Located on the corner of Compton and Kingston roads, the centre benefits from a high-profile position in a high growth catchment between Brisbane and the Gold Coast.
This is the sixth acquisition for WPT, with other commercial and retail assets purchased in Hamilton, Spring Hill and Northgate totalling $34.74 million since October 2017.
Clarence Property managing director Peter Fahey marked Underwood as a good fit for WPT, which has more than $250 million in assets between Yamba and the Sunshine Coast.
“Our target asset allocation for WPT is about 30 to 45 per cent retail, with a focus on high yield neighbourhood shopping centres in growth regions,” he said.
Clarence Property’s flagship unlisted Westlawn Property Trust is also offloading a retail centre in Robina with a price tag of $30 million.
Located on a 20,407sq m in Robina, the centre is currently 94 per cent occupied and delivered an 18.6 per cent return to investors in 2017.
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