Willows Shopping Centre purchased by Fawkner Property for $212 million

Willows Shopping Centre has officially sold, joining a Melbourne-based fund manager’s fast growing portfolio of Queensland retail properties. See how much it cost.

Fawkner Property founder Chris Garnaut has strategically acquired Willow Shopping Centre for $212 million. Picture: Supplied.

Willows Shopping Centre has officially sold to Melbourne-based fund manager Fawkner Property for $212 million, further bolstering its retail war chest following a string of recent Queensland purchases.

Fawkner has been one of Australia’s most active acquirers of regional and subregional shopping centres in recent years.

Since 2021, Fawkner has been on a national retail buying spree purchasing 11 retail assets totalling $2.1bn, including Queensland acquisitions Cairns Central, Mount Pleasant Centre, Stockland Cairns, and Stockland Gladstone.

The Townsville transaction boosts Fawkner’s total funds under management to over $3bn, with additional retail assets in the pipeline.

Fawkner Property founder Chris Garnaut said the strategic acquisition of Willow Shopping Centre extended their foothold in central and northern Queensland.

Fawkner Property founder Chris Garnaut. Picture NCA NewsWire / Aaron Francis

“(It) will allow us to capitalise on the synergies of owning a high-quality retail portfolio in a fast-growing market,” Mr Garnaut said.

“As interest rates potentially move into a stabilisation phase, private capital, which has dominated this investor space over the past two years, is moving quickly to secure high quality, large retail assets at compelling returns as this window of opportunity begins to close.

“We have recently seen the re-entry of offshore and now domestic institutional investors into the sub regional and regional shopping centre sector given the compelling returns on offer.”

CBRE’s head of retail capital markets for the Pacific Simon Rooney acted on behalf of Fawkner Property to negotiate the transaction with Willows’ owner Dexus Wholesale Property Fund while Stonebridge and JLL acted for Dexus.

Willows Shopping Centre has been purchased by Fawkner Property for $212 million. Picture: Supplied.

A Dexus spokesman said they will be working closely with the new owners to ensure a smooth transition over the coming months.

According to Shopping Centre News 2023 Little Guns report, Willows was ranked number one for total turnover in Northern Queensland, around $360m (including Aldi estimates).

The centre boasts a gross lettable area of 44,507 sqm positioned on a high profile 15.39ha site together with an additional development land parcel of 4.42ha.

It is home to Townsville’s first Aldi and is the only triple supermarket anchored shopping centre – Big W, Woolworths, Coles, and Aldi – which combine for circa 54 per cent of total centre moving annual turnover.

The centre is also underpinned and securely leased to ASX-listed, national and chain retailers, comprising 93 per cent of total tenanted GLA and 85 per cent of gross rental income.

Originally published as Willows Shopping Centre purchased by Fawkner Property for $212 million