Developer Don O’Rourke’s Consolidated Properties Group and Melbourne’s Liberman family-backed CVS Lane Capital Partners have spent $84.5 million to buy the Great Western Super Centre in Brisbane’s Keperra from Charter Hall Group.
The acquisition of the neighbourhood centre 10 kilometres north-west of the CBD brings the retail portfolio the two partners have jointly acquired up to $485 million, including seven shopping hubs completed, under renovation or in the pipeline throughout south-east Queensland.
In October they purchased the Arndale Shopping Centre south-east of the CBD for $35.5 million.
“We will be undertaking an aesthetic upgrade to the entire Great Western centre, with the aim of attracting new tenants to improve the already robust retail offering,” Mr O’Rourke said.
“Great Western fits our strategy of acquiring established neighbourhood centres in high-growth corridors – there are more than 1500 new homes planned in the surrounding area, and this level of population growth warrants an improvement to major retail infrastructure.”
The centre, which Charter Hall had owned in its wholesale $1.4 billion Long Wale Hardware Partnership since 2013, includes 15,400 square metres of floor space anchored by Woolworths and Aldi, alongside six mini majors and 44 specialty stores.
CVS Lane Capital Partners CEO Lee Centra said the Retail Partnership was looking forward to delivering on the refurbishment and leasing plans across their portfolio, with the possibility of further acquisitions and expansion on the cards.
“2019 was a very fruitful year for us, but it is really just the beginning,” Mr Centra said.
“In 2020 we expect to be commencing work on a 17,000-square-metre retail and commercial hub at our $850 million Yeerongpilly Green community. We will also be putting the finishing touches on our upgraded retail centres at Palm Beach on the Gold Coast and Wilsonton in Toowoomba while continuing work at our Centre at Karalee in Ipswich.”
The sale of the Great Western Centre was negotiated by JLL’s Jacob Swan and Sam Hatcher.
“There is ongoing demand for non-discretionary anchored retail, particularly in metropolitan locations,” Mr Swan said.
“Furthermore, properties with strong underlying land value and long-term future development potential are highly sought by investors. This investment opportunity offered scale in non-discretionary retail, which has historically been challenging to achieve. It was the second largest neighbourhood centre sale in the last 12 months.”
Separately, Charter Hall has set a new benchmark for Bunnings retail warehouses after acquiring a brand-new 16,000-square-metre outlet in Melbourne’s south-east on a yield of 4.5 per cent.
Keep up with Commercial Real Estate news.