The Strand Coolangatta sells for $142m to Alceon and Aktiv
Coolangatta’s main shopping centre has just sold for a whopping $142 million. Here’s what it will mean for locals.
Gold Coast
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Coolangatta’s main shopping centre has sold for a whopping $142 million in a move its new owners hope will further gentrify the southern Gold Coast.
Sydney-based company Alceon and property management company Aktiv secured the purchase of The Strand Coolangatta on Friday.
The retail and hospitality hub has been a suburb stalwart since the late ’80s and is now home to boutiques, Woolworths, cinemas, Timezone, food venues and more.
Active managing director Olivier Sicouri said they were “pleased” to have acquired the “vibrant” centre precinct for $142 million.
“The Strand in Coolangatta is a unique asset, positioned in the heart of an iconic precinct,” he said.
“It presents a rare opportunity to acquire an asset of this scale well below replacement cost in a location like this particularly given that it is expected to grow and gentrify and faces limited competition risk, due to prohibitively high construction costs.”
JLL joint head of retail investments Nick Willis said they couldn’t turn down the fact the centre was opposite world-renowned surfing destinations, had 30,000sq m of mixed-use and lifestyle space, and more than 200m of uninterrupted beach views.
“Opportunities to acquire large-scale and irreplaceable beachfront shopping centres like this rarely become available,” he said.
“This uniqueness, couple with the rapidly gentrifying surrounding demographics drove strong capital engagement from local and offshore investors.”
Alceon’s Queensland business founding partner Todd Pepper said they pounced on the idea to buy the centre after spotting a surge in luxury residential developments in the beachside suburb.
“The state has experienced robust population and housing price growth led by a constant period of positive migration,” he said.
“Supplemented by the upcoming 2032 Brisbane Olympics, we are excited by opportunities to acquire assets like The Strand, aligning with our investment philosophy and providing hands on management that benefits the local community.”
The Strand Coolangatta sale was one of four major Queensland-based acquisitions for Alceon in the past 18 months.
They recently purchased Smithfield Shopping Centre in Cairns, 40 Tank St in Brisbane’s CBD and the Mount Gravatt-based ATO building, together adding more than $400 million to their Sunshine State portfolio.
The sale is forecast to close in August and will mark the end of 24 years of ownership for the current owner.
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