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Stockland sells Townsville sub-regional centre to Sydney-based investor

Coles Kmart Plaza Townsville was sold on behalf of Stockland and AMP Capital for $47.25 million

Stonebridge Property Group & JLL are pleased to announce the sale of Coles Kmart Plaza Townsville on behalf of Stockland and AMP Capital for $47.25 million. The asset was sold to a Sydney-based Syndicate and reflects a fully leased yield of 5.46%.

Coles Kmart Plaza Townsville is situated on a 42,000m2 site, 5km south of Townsville Airport. The site is positioned diagonally opposite the regional shopping centre Stockland Townsville and is exposed to approximately 20.2 million vehicles per annum. The property provides 731 at-grade car parks and has a weighted average lease expiry (by area) of 4.6 years.

The strong performing Coles and Kmart stores underpinned investment demand for this asset

The convenience focused sub-regional centre includes Coles, Kmart, one mini major, 21 specialties, two kiosks and two pad sites across a GLA of 13,892m2.

Jonathon Fox of Stonebridge said “This is a strong result and 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.”

Jacob Swan of JLL 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. Convenient, essential service focused retail assets in immediate proximity to major regional shopping centres, as is the case for Coles Kmart Townsville, have traditionally always been held in high regard by investors.”

The asset was sold following a select expressions of interest campaign in July 2021, with the successful bidder submitting an offer with a short due diligence period.

AMP Capital’s 50% interest in Stockland Townsville is also on the market. Stockland Townsville is the dominant major regional shopping centre on a 9.9 hectare landholding with significant value-add potential.

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