The landmark Chevron Renaissance shopping centre at Surfers Paradise has sold to privately-owned, Sydney-based investment company Precision Group for $73.2 million.
The sale of Chevron Renaissance follows the successful divestment by JLL, on behalf of Arena, of a portfolio of five assets for $250 million to Anton Capital and 600 St Kilda Road for $81.5 million to a private investor, both in January 2015.
JLL’s head of Australasian Retail Investments, Simon Rooney, said: “A significant fall in the AUD has resulted in a strong rebound in inbound tourism which is supporting the retail environment in key tourism nodes such as the Gold Coast.""The latest figures show visitor arrivals into Australia rose by the highest rate in over 14 years. This rebound in tourism; together with the $1.2 billion Gold Coast Light Rail which was completed in mid-2014 and the expected future investment associated with the preparation of the Commonwealth Games in 2018, is providing investors with significant confidence in the growth prospects of the region,” Mr Rooney said.
Chevron Renaissance recently underwent a major capex program improving the overall ambience and strengthening the key retail precincts and mix.
The centre has a total GLA of 13,127 square metres and is constructed over two basement levels, with car parking for approximately 299 vehicles, ground level retail accommodation and two upper levels of retail and office accommodation.
The centre features a Coles supermarket, Max Brenner, Endota Spa, Liquorland and Infinity Attractions, together with approximately 57 specialty tenants, five kiosks, three ATMs and 20 commercial office suites.
JLL were appointed in August 2014 as exclusive advisers to Arena and undertook an international Expressions of Interest campaign that covered a range of alternative transaction structures to identify the optimal liquidity outcome to Arena’s investors in the CRPT, the Arena Office Fund and Arena Property Fund.
JLL received proposals by investors to acquire individual assets, portfolio offers and the opportunity to recapitalise the Arena Funds, as well as the potential to also acquire Arena’s investment management platform.
JLL’s Head of Corporate Finance Asia Pacific, Chris Key said: “The sale of Chevron Renaissance completes the final piece in the liquidity program JLL commenced on behalf of Arena last year.""The program was a comprehensive strategy to explore all potential alternatives to maximise value for the investors across the three Arena managed funds. We are pleased to have delivered this important series of transactions on their behalf.”