Abacus Property Group and Zenonos Group have exchanged contracts to acquire Lutwyche City Shopping Centre in Brisbane's inner north for $65 million.
The transaction will see the developers acquire the 18,929 sqm, four-level enclosed shopping centre with 812 car parks at $3,450 per square metre.
The centre has 12,103 sqm of gross lettable area (GLA) anchored by Coles and Aldi supermarkets, two mini majors and approximately 5,659 sqm of specialty GLA. Lutwyche City also has 6,441 sqm of office space and an adjacent freestanding 384 sqm childcare facility.
Abacus Property Group CEO, Dr Frank Wolf said: “We are pleased to access another strong core plus opportunity.""The property is a strong asset acquired on an attractive rate per square metre and an asset that offers a number of value add projects that will increase income over time.”
The transaction is subject to FIRB approval. Settlement is anticipated to occur in October 2015.
The shopping centre is currently approximately 90 per cent occupied and has a weighted average lease expiry of over 5.3 years.
Under the terms of the venture, Abacus will fund 75 per cent of the equity and Zenonos will fund the remaining 25 per cent. Abacus will provide the property, asset and development management services to
Lutwyche is located 5km north of the Brisbane CBD and the centre is the dominant convenience centre servicing local residents. Lutwyche City is well located with exposure to major transport corridors and
the local public transport hub.