Portfolio
WA/NSW - $242.5 million
HMC Capital have announced acquisitions of two Lendlease-owned shopping centres, which include Southlands Boulevarde in Western Australia's Willetton, and Menai Marketplace in New South Wales, for a combined figure of $242.5 million. Southlands Boulevarde is being purchased for HMC's HomeCo Daily Needs REIT (HDN), whilst Menai Marketplace is being secured as part of the organisation's Last Mile Logistics fund (LML Fund). Menai Marketplace is a highly productive asset anchored by a Woolworths supermarket, whilst Southlands Boulevarde generates approximately $139 million of turnover per annum, with that value expected to rise when an Aldi opens at the site in the first half of 2023 to further complement the existing Woolworths and Coles offering.
On Southlands Boulevarde, HDN CEO Sid Sharma highlighted the demographic value of the asset. “We are delighted to have secured Southlands Boulevarde on an attractive yield in an excellent demographic with >80% of income weighted to daily needs tenants,” Mr. Sharma explained. “It is also a unique triple supermarket anchored centre and helps HDN rebalance back to its model portfolio.”
On Menai Marketplace, HMC Capital CEO and Managing Director David Di Pilla spoke on the expected value of the LML Fund. “We are making strong progress executing on our key growth initiatives notwithstanding the uncertain and volatile market backdrop,” Mr. Di Pilla stated. “The LML Fund represents the first of what is expected to be a series of funds which we believe can over time grow into a multi-billion-dollar strategy.”
Queensland
MACKAY - $280 million
Sentinel have continued their busy year by acquiring a 100% interest in Queensland's Caneland Central Shopping Centre, purchasing the asset off of Lendlease's APPF Retail Fund. JLL's Nick Willis and Sam Hatcher helped to moderate the sales process, and they spoke on the rarity of 100% stake trades. “Opportunities to acquire a 100% stake in major Regional Shopping Centres seldom come to market,” commented Mr. Hatcher. “Caneland Central is the only 100% interest regional shopping centre to have sold in 2022, and in the past 10 years, only three of the 38 regional shopping centre assets to have sold in Australia have been for a 100% interest with management rights.”
Caneland Central is the largest shopping centre north of the Sunshine Coast, containing 66,000 sqm in Gross Lettable Area (GLA). Anchored by national brands like Myer, Woolworths, Coles, Big W, and Target, Caneland Central's fundamentals are extremely positive.
SEDGEFORD – Circa $100 million
The 48,370-hectare cattle farming property known as Sedgeford has sold to Kane Cattle Co's David and Gina Kane for a reported $100 million, after being owned by the Teys family for 32 years after they purchased the site in 1990 for $4 million. The site is located 35 kilometres south-east of Alpha, and has a 7,000-cattle capacity. The sale of the farm was managed by Brad Hanson of Hourn and Bishop QLD.
ATHERTON - $11.8 million
The Big W outlet at 8-20 Mabel Street in the rural Queensland town of Atherton has been sold by Quanta Investment Funds for $11.8 million, after a marketing campaign facilitated by CBRE’s Joe Tynan, Josh Scapolan and Danny Betros. The 4,482 sqm building was purpose-built for Big W, and has been occupied by the retailer since opening in 2006. Big W operates as the only DDS within the main trading area, with sales expected to grow by 1.5% per annum until 2036.
“The sale demonstrates there is continued buyer depth for regionally located, freestanding assets underpinned by strong covenants which provide income security and management benefits,” Mr. Scapolan explained. “Our four-week Expressions of Interest campaign generated over 70 enquiries and seven formal offers from high-net-worth private investors, syndicates, and institutional funds.”
MALENY – Undisclosed
A Queensland family have acquired a luxury Maleny lodge as demand for Sunshine Coast accommodation assets continues to increase. The hotel, opened in June 2022 after a comprehensive restoration, was sold by owners Pink Developments Pty Ltd. The hospitality asset is an adults-only retreat which combines modern interior design with its original 1905 heritage charm.
"The sale is further evidence of the incredibly strong buyer interest in Sunshine Coast accommodation assets, with limited freehold investments available, as well as the demand for boutique accommodation offerings,” stated CBRE Hotels’ Associate Director, Hayley Manvell, who was responsible for brokering the deal.
New South Wales
POTTS POINT - $46.25 million
Hospitality and accommodation operator, Pro-invest Group, have purchased the Larmont Hotel in Potts Point off of an ownership consortium consisting of Singapore-based Amcorp Global, Kenmooreland, and Melbourne hoteliers Jan and Peter Clark. The property previously traded back in 2014, before the then-Diamont Hotel was bolstered by the privately-held apartments of levels 11 and 12 of the building and renamed the Larmont Sydney by Lancemore.
"The purchase fits neatly within Pro-invest's strategy to build Australia's leading portfolio of highly sustainable, lifestyle-oriented hotels,” the Group stated.
PADDINGTON – Circa $13 million
The Bruce Mathieson Group has purchased The Captain, a recently refurbished hospitality asset in close proximity to some of Sydney’s most prominent entertainment landmarks like Allianz Stadium and the SCG. The site was offloaded by a syndicate that included local businessman Peter Scott, and contains a renovated bistro and gaming room that features 15 electronic gambling machine entitlements.
COFFS HARBOUR – $2.8 million
Charlie Redmond has acquired the leasehold to double-storey Coast Hotel in Coffs Harbour, at 2 Moonee Street. The Coast is situated on a 1,600 sqm corner in one of Coffs Harbour's most frequented thoroughfares. Renown for live music and entertainment, the popular bar provides a bistro and dining area, as well as a gaming room with 15 machines and a large beer garden.
According to Redmond, his move into Coffs Harbour was very deliberate. "Coffs Harbour was most certainly a target location for me... it ticks a lot of the boxes,” he stated. “I’m fortunate to be taking over a strong and established business and am excited to add my own touches to this vibrant community.” JLL’s Kate MacDonald facilitated the sale.
Victoria
KILSYTH - $6.44 million
The former site for Pembroke Secondary College Cambridge’s Kilsyth campus has been purchased by the Yarra Ranges Shire with intentions to use the 3.581-hectare site at 150 Cambridge Road for open space. According to reports, the $6.44 million price tag represents a 50 per cent discount to market value, when negotiations initiated in March.
HOPPERS CROSSING - $4.35 million
A national car and truck retailer has acquired a 3,621 sqm industrial site at 403-405 Old Geelong Road from Vincent and Damian Drum. The new owner intends to occupy the property, which is currently tenanted by WestSide Car City. With over 50 enquiries, four active bidders and a sale price in excess of $1,200 per sqm, the sale has reinforced how in-demand vacant land in the western industrial market is.
The property was sold at auction following a competitive on-market campaign run by Steve Jones and Joel Davy of Knight Frank, in conjunction with Tim Darcy and Andrew Prowse of Darcy Jarman.
