Capalaba Shopping Centre Fetches $148 Million


The Capalaba Central sub-regional shopping centre in Queensland has sold for $148.5 million to the private Shayher Group, which Wynnum Plaza and Yamanto Marketplace, in Brisbane.

The sale reflected an initial yield of circa 7.50%.

Capalaba Central has been managed by DEXUS Property Group (DEXUS) for more than 15 years.

Simon Rooney, JLL’s Head of Retail Investments for Australia said: “The sub-regional market continues to attract high levels of interest from a wide variety of domestic & offshore investors.""Value-add, quality opportunities are rare and highly sought after for their potential to drive higher returns for investors, in a market where yields are compressing for the best assets.”

“Investors are responding to the improvement in underlying asset performance and we’re seeing a rise in the level of risk appetite.”

Capalaba Central is a major sub-regional shopping centre securely anchored by both Woolworths and Coles supermarkets, a Big W discount department store, Harvey Norman, an eight screen Birch Carroll & Coyle Cinema, in addition to four mini major tenancies, 95 specialty shops and kiosks providing a total GLA of 42,124 square metres.

[urbanRelatedPost][/urbanRelatedPost]The centre occupies a landmark and significant land holding of 100,500 sqm just 20 km south east of the Brisbane CBD.

The centre includes abundant parking for 1,591 vehicles and an excellent provision of food and service based retailers in addition to a strong representation of national and chain retailers which account for approximately 90% of total GLA and approximately 84% of gross tenant income.

2014 was the strongest year ever recorded for sub-regional centre transactions, with 2015 results already strong.

Mr Rooney said: “There has been over $560 million in sub-regional transactions already in 2015 to date, reflecting a very solid result compared with the long-term annual average of just $866 million."“The Queensland retail market has been very active in terms of overall investment activity, with volumes up 20% year on year to 1.7 billion in 2014 across all shopping centre sub-sectors."The high level of activity has continued into 2015 with the Capalaba Central transaction for $148.5 million and SCA’s purchase of Whitsunday Shopping Centre for $46.98 million, both transactions also completed by JLL.

DEXUS Group General Manager, Head of Retail, Stewart Hutcheon said: “DEXUS has completed six acquisitions on behalf of third party clients over the past 18 months and now manages a portfolio of 12 sub-regional shopping centres and seven co-owned properties, as well as a city retail portfolio connected to prime grade CBD office properties.

“Recent transactions by DEXUS on behalf of third party clients include Beenleigh Marketplace, Queensland; Shepparton Marketplace, Victoria; Deepwater Plaza and Sturt Mall in New South Wales; and as part of the CPA transaction, QV, 180 - 222 Lonsdale Street and Galleria, 385 Bourke Street in Melbourne, reflecting the Group’s focus on driving returns for its third party clients.”


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