Clarence Property swoops in $45m raid on Woolworths-anchored retail centres in Qld growth corridor

Fund manager Clarence Property has acquired two southeast Queensland neighbourhood shopping centres, bringing its flagship Westlawn Property Trust portfolio to $400 million.

The Woolworths-anchored Logan Village Shopping Centre in the Brisbane-Gold Coast growth corridor.

TWO southeast Queensland neighbourhood shopping centres have changed hands with a Gold Coast-based property fund manager adding the assets to its investment trolley.

Clarence Property has swooped on the Woolworths-anchored retail assets within the Brisbane-Gold Coast growth corridor in deals totalling $45 million.

It has purchased Ormeau Shopping Centre for $29 million and Logan Village Shopping Centre for $16 million from West Australian-based Canute Investments.

The acquisitions bring the asset value of Clarence Property’s flagship Westlawn Property Trust to $400 million, underpinned by eight shopping hubs stretching from Yamba in northern New South Wales to Logan.

Both of the transactions were settled on Thursday.

Ormeau Shopping Centre, one of the two retail centres acquired by Clarence Property.

Family-owned Canute Investments had owned the retail centres since 2015 when it paid a combined $39 million for the newly-built assets.

It has divested the properties as part of its $140 million portfolio sell-off.

The 4602sq m Ormeau Shopping Centre also comprises six specialty outlets, including a medical and pharmacy tenant. It was sold with a weighted average lease expiry (WALE) of more than 12 years.

Logan Village Shopping Village — spanning 3174sq m — has four specialty outlets and was offloaded with a WALE of more than 13 years.

The sale prices of both properties reflected yields of 6 per cent.

Clarence Property’s managing director Peter Fahey said the two retail centres were a “great fit” for Westlawn Property Trust and its conservative investment model.

Clarence Property managing director Peter Fahey.

“This annuity style core retail property is exactly what we were looking for to add to 19 other retail, commercial, industrial and development properties which make up the trust,” he said.

“Our recent purchases demonstrate our belief in the neighbourhood centre retail model, which focuses on core retail, with the potential to add click and collect services as online shopping gathers momentum.

“Neighbourhood retail centres also provide a social function for the community, without the risk associated with big box retail found in larger centres.”

CBRE’s Joe Tynan and Michael Hedger brokered the deals through an expression of interest campaign.

Mr Tynan said 146 inquiries were fielded from a variety of investors.

“We had 12 bids from local and offshore private investors and syndicates,” he said.

Mr Hedger added: “Out of all the neighbourhood retail centres that have been put to market in southeast Queensland this year, these properties represent a very defensive income profile with low exposure to specialties and long WALEs.”