Consolidated Properties Group and CVS Lane Capital Partners has made their biggest retail acquisition to date, buying the Great Western Super Centre in Brisbane for $84.5 million.
The centre has pumped the pair’s retail portfolio up to $485 million, including seven shopping hubs complete, under renovation or in the pipeline throughout south-east Queensland.
The Keperra property was purchased from Charter Hall and an institutional investor who bought it for $42.9 million in 2013 with Charter Hall having a $22 million investment stake.
The centre has 15,400sq m of floor space and was anchored by Woolworths and Aldi located 10km north west of the CBD at the corner of 577 Settlement Road and 1028 Samford Road .
Consolidated Properties chief executive officer Don O’Rorke says 2019 was the most active year yet for the partnership.
This took into account the purchase of Arndale Shopping Centre in October for $35.5 million, with a $15 million upgrade of that centre now under way.
“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,” O’Rorke said.
“Great Western fits our strategy of acquiring established neighbourhood centres in high growth corridors–there are more than 1,500 new homes planned in the surrounding area, and this level of population growth warrants an improvement to major retail infrastructure.”
CVS executive officer Lee Centra said they had refurbishment and leasing plans across their portfolio, with the possibility of further acquisitions and expansion on the cards.
“In 2020 we expect to be commencing work on a 17,000sq m retail and commercial hub at our $850 million Yeerongpilly Green community,” Centra said.
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,” 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.
“As retail continues to evolve, we will continue to see more shopping centres blurring the lines between the traditional classifications and transform into more hybrid-style shopping centre formats.”