Woolworths banks $108m from malls
Woolworths has offloaded three east coast malls with leasebacks.
In the biggest deal, the supermarket giant is banking $41.8 million for the three year old Cranbourne West Shopping Centre (pictured, top), in Melbourne’s south east.
The $41.8 million deal with Mintus reflects a 5.37 per cent fully let net yield.
It also values the gross lettable area at $6908 per sqm.
Colliers’ James Wilson, Tim McIntosh and Mike Crittenden with Stonebridge’s Justin Dowers and Kevin Tong were the agents.
In Queensland, meanwhile, Woolworths has sold the Dakabin Shopping Centre, on 2.33 hectares in Brisbane’s outer north, for $40m, and Bannockburn Village, on 1.4 ha in the south east, for $26m, to one buyer, Henry Yuen’s Centra Property Group.
JLL’s Jacob Swan, Sam Hatcher and Ned McKendry with CBRE’s Michael Hedger, Joe Tynan and James Douglas brokered those deals.
Also today, we are reporting that Coles is banking $53m from a two year old investment with a long part-leaseback, at Schofields, north west of Sydney.
Cranbourne West Shopping Centre
Cranbourne West Shopping Centre covers 3.11ha, of which 1.12ha is undeveloped; zoned Commercial 1, it fronts Hall and Evans roads, exposed to over 17,000 vehicles a day.
Woolworths is the anchor – occupying 62pc (3761 sqm) of the 6051 sqm of lettable area on a lease expiring in 2033.
Combined with the 11 specialty stores, mini major and a standalone medical precinct, the Weighted Average Lease Expiry is eight years.
The asset also contains 295 car parks (story continues below).
The property’s moving annual turnover is also 38pc over the Melbourne average, the agents said.
“Neighbourhood shopping centres recorded a 75pc decrease in transaction volume nationally in Q1 2023 with only $135m in sales compared to $540m in the corresponding period in 2022,” Mr Wilson added.
“The limited supply of high quality metropolitan neighbourhood centres has resulted in campaigns generating strong enquiry levels and competitive bidding from largely generational private capital,” according to the executive.
“Mintus, a Sydney based investor’s acquisition of Cranbourne West Shopping Centre is reflective of increased interstate and offshore purchaser activity for neighbourhood shopping centre transactions announced in early 2023”.
Mr Dowers said convenience centres in growth corridors like Cranbourne West are highly sought.
“The increases in construction costs are restricting the amount of retail development that is occurring in these growth areas, which will create a demand and supply imbalance and drive performance of the existing centres,” he added.
Mintus bulks up
The acquisition of Cranbourne West Shopping Centre at 655 Hall Road comes five months since Mintus snapped up the Beenleigh Marketplace, south east of Brisbane, from Dexus, for $88.4m.
On 6.068ha it, like Cranbourne West Shopping Centre, is in a growth corridor.
The group also, in 2021, purchased an office and neighbouring development site in Parramatta – the suburb it is headquartered – for $154m, and a business park at Gladesville – the latter again from Dexus.
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