Hamell Retail founders Daniel and Kylee Burke pay $17.5m for Poinciana Place Shopping Centre
Richlister developers well known for their value-add strategy have snapped up a tired Sunshine Coast shopping centre for $17.5 million, with plans to expand and reposition the asset.
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Hamell Retail founders Daniel and Kylee Burke have snapped up a Sunshine Coast neighbourhood shopping centre as a value add play for their growing retail portfolio.
The richlisters have purchased Poinciana Place Shopping Centre at 86-94 Poinciana Ave, Tewantin for $17.5m.
The fully leased 3104sq m shopping centre is anchored by Woolworths supermarket, representing 77 per cent of the gross lettable area and 57 per cent of income. The centre has an additional nine non-discretionary retail tenants.
The property was developed by the Stockwell Group in 2006 and according to CoreLogic sold to a Melbourne investor in 2017 for $17.3m.
Through Hamell Retail the Burke Family is well known for their value-add strategy.
They completed the $20m expansion and repositioning of the Woolworths-anchored Camp Hill Marketplace and the family’s acquisition of Poinciana Place is expected to replicate the same strategy.
CBRE’s Joe Tynan, Michael Hedger and Louisa Blennerhassett conducted the expressions of interest campaigns with Vinci Carbone’s Frank Vinci as transaction adviser.
Mr Tynan said the sale achieved a 5.49 per cent yield.
“That represents a very strong result in light of the market volatility, short WALE (Weighted Average Lease Expiry) and requirement for immediate cap ex,” he said.
“It was a competitive campaign and we received 160 inquiries resulting in eight formal bids. In the final round there were three bids around the same price with the top party selected on their terms and capacity to complete in a short time frame.”
Mr Hedger said the transaction followed the recent sale of Woolworths Mountview, which changed hands for $35.2m, achieving a yield of 5.27 per cent.
“Pricing for neighbourhood shopping centres appears to be holding up better than other asset classes in the current higher interest rate environment,” he said.
“The key reason is the smaller transaction size which is attractive to private investors who may not require any debt. Also, supermarkets have been resilient with sales generally increasing with inflation which drives income for these assets.”
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