Investment Industry News

Fawkner Property acquires Stockland Cairns for $146 million

Stockland Cairns, 537 Mulgrave Rd, Earlville QLD

Australian asset manager, Fawkner Property has acquired Stockland Cairns in an off-market deal that was transacted at the 30 June 2021 book value of $146 million, reflecting a core capitalisation rate of 6.75%. The deal is expected to settle in Q3 FY22.

The deal was successfully negotiated off-market by Simon Rooney, Head of Retail Capital Markets – Pacific at CBRE Asia Pacific.

Fawkner Property’s General Manager of Funds Management, Stuart Fox said the transaction was a fantastic result for both parties given Fawkner’s strict focus on Essential Service assets and community-based town centres, “in a market that has moved a lot in recent months, we are delighted to acquire such a prominent and high performing centre that is heavily weighted towards Essential Services tenants. CBA have been a great partner in financing the transaction.”

The dominant double supermarket anchored shopping centre is located on the Bruce Highway, the main southern arterial road accessing Cairns with annual vehicular traffic of 13.4 million vehicles, the centre has a landmark landholding of 111,3000m2.

In 2019, Stockland Cairns welcomed a new dining precinct

The centre is anchored by two strong performing supermarkets, being Coles and Woolworths with combined sales of more than $91 million.

The centre is further supported by three major tenants, 11 mini-major tenants including JB Hi-Fi and Rebel sport, as well as 97 specialty tenants and seven pad sites.

The strong tenancy mix is dominated by national retailers which represent 89% of total centre GLA and 83% of centre income.

The Centre will form part of Fawkner Property’s diversified Essential Service Trust No.17 (EST17) which will be available to investors in the first half of the calendar year 2022. The centre, as well as the broader EST17, is financed by the Commonwealth Bank of Australia’s Corporate Bank, a trusted Fawkner Partner. The trust will take Fawkner’s assets under management to over $1.5 billion in Essential Services funds.

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