Multimillion-dollar deal and makeover plan means no more living in the 70s for shopping centre

Springwood’s Arndale Shopping Centre has changed hands for the first time in more than 20 years in a $35.5 million deal and its new owners have big plans for a major upgrade.

Aerial view of Arndale Shopping Centre at Springwood, south of Brisbane.

A SHOPPING centre built in the 1970s is set to be rejuvenated south of Brisbane after changing hands in an early start to the traditional commercial property Christmas rush.

Springwood’s Arndale Shopping Centre has been bagged in a $35.5 million deal by a retail property partnership targeting underperforming assets in growth areas.

Brisbane-based Consolidated Properties Group and CVS Lane Capital Partners have snapped up the Coles supermarket-anchored centre with plans for a $25 million upgrade.

Arndale Shopping Centre is the fifth acquisition for the retail partners and it will bring their shared portfolio to more than $400 million.

According to CoreLogic, it last changed hands in 1996 when it was bought for $16.5 million.

The neighbourhood shopping centre sits on a prime 3.4ha holding at 17-27 Cinderella Drive, Springwood, adjacent to the M1 motorway.

It first opened its doors in 1974 and comprises 11,259sq m of retail space, including 35 specialty stores.

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Consolidated Properties executive chairman Don O’Rorke said Arndale was a “strategic fit” for its partnership with the Liberman family-backed CVS Lane, which has a target of up to $600 million in assets.

“The previous owner of Arndale Shopping Centre held the asset for almost 24 years and we saw the opportunity to create a contemporary retail environment with a high quality grocery, food, medical, health and wellbeing offering,” he said.

Mr O’Rorke said the centre had potential to deliver strong returns once it is renovated to meet contemporary retail standards, with work expected to start later this year.

“The rejuvenation of Arndale is anticipated to take about 12 months with the introduction of new retailers to the centre expected to create multiple job opportunities,” he said.

“Springwood is the central business district of Logan and therefore retail demand is underpinned not only by a growing resident population but also a thriving business community.”

CVS Lane Capital Partners chief executive officer Lee Centra said over the past five years the retail partnership had invested significantly in either the development or upgrade of four other centres in south-east Queensland and northern New South Wales.

“We currently have work underway at shopping precincts in Ipswich’s Karalee, Toowoomba’s Wilsonton and Gold Coast’s Palm Beach as well as Yeerongpilly Green in Brisbane – all of which are fast growing areas with a need for updated retail amenity, much like Springwood,” he said.

“Arndale has supported Springwood’s growing population for more than four decades. Our plan is to protect the interests of long-term tenants by undertaking a much needed structural and cosmetic upgrade of the centre, which will also invite interest from new retailers.”

Stewart Gilchrist from Colliers International negotiated the latest deal with a new 10-year lease in place to Coles. He said it attracted strong interest from retail investors and developers nationally.