Undeterred by a slowing retail sector, CVS Lane Capital Partners and Consolidated Properties Group has expanded its retail portfolio purchasing the Arndale Shopping Centre south of Brisbane for $35.5 million.
The partners say they have plans to invest up to $25 million in structural and cosmetic upgrades of the Coles-anchored centre located in Logan suburb of Springwood, around 20-kilometres south of Brisbane CBD.
Consolidated Properties Group, led by Don O'Rorke, described the buy as a “strategic fit” for the partnership, eyeing the centre as an underperforming neighbourhood centre in a growth area.
"The previous owner of Arndale Shopping Centre held the asset for 24 years and we saw the opportunity to create a contemporary retail environment with a high quality grocery, food, medical, health and wellbeing offering," O'Rorke said.
The centre, which opened in 1974, spans a 3.4-hectare site, and fronts the M1 Freeway.
Colliers International’s Stewart Gilchrist brokered the transaction.
O’Rorke said that renovation work is expected to take 12 months with plans to kick off later this year.
"Springwood is the central business district of Logan and therefore retail demand is underpinned not only by a growing resident population but also a thriving business community," he said.
The retail partnership has invested in four neighbourhood centres across South East Queensland and northern New South Wales over the past five years, including shopping precincts in Ipswich's Karalee, Toowoomba's Wilsonton and Gold Coast's Palm Beach.
“All of which are fast growing areas with a need for updated retail amenity, much like Springwood," CVS Lane Capital Partners chief executive Lee Centra said.
The duo are currently delivering an $850 million development project, Yeerongpilly Green, which spans a 14-hectare site five-kilometres south of Brisbane CBD.
O’Rorke's Consolidated Properties is also on the proposal behind Kelly Slater’s $100 million surf ranch in a move that would see it partner with the World Surf League for the major project at Coolum on the Sunshine Coast.