Consolidated Properties and CVS Lane Capital Partners pay $84.5m for the Great Western Super Centre at Keperra
A Brisbane property group and its partner have bolstered their retail portfolio to an eye-watering $485 million with the purchase of a suburban shopping centre now set for a major upgrade.
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A LOCAL property group and its Sydney-based partners have kicked off the year with the second largest purchase of a Brisbane neighbourhood shopping centre in the past 12 months.
Consolidated Properties Group and CVS Lane Capital Partners paid $84.5 million for the Great Western Super Centre on Samford Rd, in Keperra in Brisbane’s north western suburbs.
The purchase has pumped the partnership’s retail portfolio up to $485 million, including seven shopping hubs either complete, under renovation or in the pipeline throughout southeast Queensland.
Consolidated Properties chief executive Don O’Rorke said 2019 was the most active year yet for the partnership, taking into account the purchase of Arndale Shopping Centre in Springwood for $35.5 million, with a $15 million upgrade of that centre now underway.
“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,” he said.
“Great Western fits our strategy of acquiring established neighbourhood centres in high growth corridors — there are more than 1500 new homes planned in the surrounding area, and this level of population growth warrants an improvement to major retail infrastructure.”
Great Western Super Centre is 10km north west of the Brisbane CBD and has 15,400sq m of floor space anchored by Woolworths and Aldi, alongside six mini majors and 44 specialty stores. It is on a 6.49ha site.
According to CoreLogic it last changed hands in 2013 when it was bought by the ASX-listed Charter Hall for $62.9 million
The sale of the Great Western Centre was struck by JLL’s Jacob Swan and Sam Hatcher.
Mr Hatcher said there was ongoing demand for non-discretionary anchored retail, particularly in metropolitan locations.
“Furthermore, properties with strong underlying land value and long term future development potential are highly sought by investors,” he said.
“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.”
CVS Lane Capital Partners Chief executive lee centra said their partnership with Consolidated Properties is looking forward to delivering on the refurbishment and leasing plans across their portfolio, with the possibility of further acquisitions and expansion on the cards.
“Last year was a very fruitful year for us, but it is really just the beginning,” he said.
“In 2020 we expect to be commencing work on a 17,000sq m retail and commercial hub at our $850 million Yeerongpilly Green community.
“We will also be putting the finishing touches on our upgraded retail centres at Palm Beach on the Gold Coast and Wilsonton in Toowoomba while continuing work at our centre at Karalee in Ipswich.”
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