Poinciana Place Shopping Centre Tewantin sale sets Sunshine Coast record
THE SALE of a neighbourhood shopping centre has notched up a record yield for a southeast region.
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THE sale of a neighbourhood shopping centre has notched up a record yield for the Sunshine Coast, which is riding a wave of infrastructure and residential development activity.
A Melbourne-based investor paid $17.3 million for Stockwell Funds Management’s Poinciana Place Shopping Centre in Tewantin. The sale realised a yield of 5.9 per cent, a record for neighbourhood shopping centres on the Sunshine Coast.
The Woolworths-anchored shopping centre attracted more than 260 buyer inquiries in the campaign run by CBRE’s Peter Rossi and Joe Tynan and Savills Peter and Jon Tyson.
Originally developed by Stockwell in 2006, the shopping centre, was acquired for $12 million in 2013 in a counter cyclical play by an unlisted property investment fund established by Stockwell Funds Management.
Head of Stockwell Funds Management Andrew Dalton said the shopping centre had been a great asset for investors in the fund, and delivered outstanding annual returns of 19.2 per cent (IRR) and a return on equity of 54 per cent over a three-year period.
“The sale also provided our investors the opportunity to reinvest capital into other Stockwell investment funds underpinned by growth assets in the retirement living and inner city riverfront owner-occupier apartment sectors, which are currently targeting returns of 15 to 20 per cent per annum,” he said.
The fully leased 3106sq m shopping centre is in the high street of Tewantin and is anchored by a 2400sq m Woolworth’s supermarket, with 10 specialty tenancies. It has open and undercover parking.
Mr Tynan said the campaign produced 11 bids which included two unconditional offers and a range of local, interstate and offshore bidders.
“The centre proved popular with private investors continuing the trend of tight yields for this asset class,” he said.
Peter Tyson said investor interest was driven by the large weight of equity targeting the neighbourhood retail sector, low cost of debt and the attractive lot size under $20 million.
“The record yield result was not surprising given centre dynamics, with supermarket trading performance above benchmark levels, no vacancies and long WALE (weighted average lease expiry) of eight years,” he said.
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