Cattle farmers buy Alceon, CPRAM's Sunshine Coast shopping centre for $41.5 million
Financier and property fund manager Alceon Group and CPRAM Investments have on face value doubled their money in five years after selling the Peregian Springs Shopping Centre on Queensland’s Sunshine Coast for $41.5 million.
Members of a farming family, which sold two cattle stations to Macquarie’s Paraway Pastoral last year for more than $135 million, purchased the shopping centre on an initial passing yield of 5.35 per cent.
The 4772 square metre centre is anchored by a Coles supermarket, 14 tenancies and a dedicated medical precinct.
Speaking on behalf of the vendors, Olivier Sicouri said the sale helped deliver a strong return to investors.
“The sale price was in line with our expectations,” Mr Sicouri said, “[The sale was] reflective of the quality of the asset.”
“Coupled with the income yield received over the last five years [the sale] resulted in an internal rate of return in excess of 25 per cent per annum to our investors”.
The shopping centre was purchased by the vendors in 2012 for $20.43 million. It has since been actively remixed and prepared for expansion since that time.
JLL’s Sam Hatcher, Jacob Swan and David Mathews and CBRE’s Peter Rossi and Michael Hedger sold the property on behalf of Alceon and CPRAM Investments.
Keen interest
JLL’s director of Queensland retail investments Sam Hatcher said there had been significant interest from syndicators, high net worth individuals and fund management groups.
“Combined enquiry from JLL and CBRE totalled in excess of 100 parties,” Mr Hatcher said.
The centre, situated in the Peregian Springs Master planned community has a weighted average lease expiry (WALE) of 7.5 years.
CBRE’s state director for retail investments Peter Rossi said the stable income and development opportunities were the main attraction for investors.
“Groups were particularly attracted to Peregian Springs Shopping Centre because it not only provided a stabilised, secure and growing income stream but also offers a number of immediate additional value-add/development opportunities to further drive income growth and super-charge the purchaser’s returns,” Mr Rossi said.
The northern Sunshine Coast is a rapidly growing population corridor with 110 residential lots under development immediately to the south of the centre and significant further residential lots earmarked to be developed by 2021, representing the addition of more than 1800 new people in the trade area upon completion.
The overall sale price of the shopping centre equates to a capital value of $8697 per square metre.
