Investment Industry News

Centuria expands institutional healthcare and retail portfolios

Centuria secures Cameron Park Plaza for 60.25 million

Real Estate Funds Manager, Centuria Capital Group, has secured $223 million worth of healthcare and daily needs retail assets on behalf of existing institutional partnerships.

Centuria, via its existing daily needs retail partnership with a global institutional investor, has secured one of Newcastle’s newest neighbourhood shopping centres – Cameron Park Plaza shopping centre located at 73 Northbridge Drive, Cameron Park NSW, 17km west of Newcastle’s CBD for $60.25 million.

Built in 2020 by Woolworths Group’s development business, Fabcot, the single-level 7,037m2 neighbourhood shopping centre is anchored by a full-line Woolworths supermarket in addition to three mini-major tenants, 17 specialist stores and two kiosks with more than 90% of gross income underpinned by national and chain retailers.

The Colliers team of James Wilson and Alex James-Elliott negotiated the deal for Cameron Park Plaza on behalf of Fabcot, attracting both high net worth private investors and institutional capital. There were more than 180 purchaser enquiries and 11 first round offers throughout the on-market Expressions of Interest campaign.

“Cameron Park Plaza generated incredibly competitive bidding from private and institutional investors, with the non-metro NSW neighbourhood shopping centre campaign recording five offers at or below a 5% fully leased yield,” Wilson said. “The benchmark result highlights the depth of market targeting high quality Neighbourhood Shopping Centres that feature strong income growth potential”.

The campaign for Cameron Park Plaza attracted over 180 purchaser enquiries and 11 first round offers

“The campaign has resulted in circa $500 million of qualified, undeployed capital, that is required to be invested,” James-Elliott said. “We are currently working with a select number of the underbidders seeking to secure similarly strong performing neighbourhood shopping centres in NSW regional and metropolitan locations.”

The centre is strategically located in a rapidly evolving retail and community services precinct. The precinct includes recently constructed McDonald’s and KFC restaurants which will be complemented by future EG Fuel Service Centre, Childcare, Tavern and Council Library developments.

The 3.77-hectare site comes with flexible B2 Local Centre zoning and a low site coverage of just 18.6%.

The acquisition of Cameron Park Plaza increases the global institutional investor’s daily needs retail portfolio to more than $600 million.

Additionally, a healthcare real estate-focused joint venture with an investment vehicle sponsored by Morgan Stanley Real Estate Investing (MSREI), known as Centuria Prime Partnership (CPP), will develop a new private hospital in Sydney’s inner south suburb of Alexandria, which will have a $163 million end value.

The Alexandria development expands CPP’s portfolio to four high-quality assets with an estimated end value on completion exceeding $372 million.

The 3,000m2 site, located at 28-32 Bourke Road, Alexandria NSW, will transform an existing single-storey light industrial building into a 10,500m2 seven-level, purpose-built hospital complemented by allied health operators.

Jason Huljich, Centuria Joint CEO, said, “Alexandria benefits from its proximity to Sydney’s CBD while providing significantly sized land parcels that are ideal for private hospitals, which require large floorplates and multiple levels. This is a rare opportunity to deliver new, bespoke healthcare infrastructure in such a central location for Sydneysiders, which is why we are confident it will attract other allied health operators seeking to co-locate at the hospital.”

“Centuria continues to source and execute prime real estate acquisitions that attract high-calibre operators while meeting the requirements of our existing institutional capital partnerships. We will continue to expand our institutional partners’ high-quality portfolios with existing real estate and fund-through opportunities across geographically diversified markets,” said Huljich.

TGC Agency’s Paul Hunter and John Romyn executed the Alexandria site’s sales campaign.

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