Singapore-based Rockworth Capital Partners pay $160 million for Alceon Captrans JV’s Town Square, Redbank Plains

A SINGAPORE-based company has settled on the purchase of one of Queensland’s newest subregional shopping centres.

SETTLED: Town Square, Redbank Plains which sold for $160 million.

SINGAPORE-based Rockworth Capital Partners has settled on the purchase of one of Queensland’s newest subregional shopping centres.

Town Square, Redbank Plains has changed hands for about $160 million through a deal struck by JLL’s Simon Rooney and Sam Hatcher on behalf of the Alceon Captrans JV.

The sale realised a yield of 6.25 per cent.

Alceon and Capital Transactions bought the then Redbank Plains Shopping Village in 2013 for $27 million from Queensland coal entrepreneur Paul Darrouzet.

At the time the 5900sq m neighbourhood shopping centre was on 7ha site and was anchored by Woolworths.

The redeveloped shoppingcentre comprises 26,945sq m of gross lettable area and includes Woolworths, Coles, and ALDI supermarkets, a Target DDS, together with two drive-through tenancies, a large format tenant precinct, specialty tenancies and at grade and basement car parking for over 1200 cars.

Alceon executive director Todd Pepper said the transformation of the asset to a subregion shopping centre was a “lot of hard work”.

He said while Alceon held shopping centres in its portfolio the nature of the redevelopment and expected yield it was decided to put the property on the market.

“When it comes down to it we’re traders,” he said.

Mr Rooney said there was a very clear trend towards offshore investors increasingly driving acquisitions of quality Australian subregional assets — a trend that’s been building and gaining momentum in 2017.

“Sub-regional retail is the preferred asset class for many offshore groups seeking quality retail exposure, given the defensive and resilient characteristics and positive in built growth outlook,” he said.

“Assets which are predominantly food, service and convenience-based, with a high proportion of non-discretionary retail and limited fashion, offer enhanced and consistent returns and limit trading volatility.

“The lower rental profile of subregional centres also provide attractive opportunities for income and capital growth, via asset repositioning and tenancy re mixing.”

Mr Hatcher said tight planning restrictions constrain the development of new subregional shopping centres and limit the potential for new asset creation.

“As a result, this brand new triple supermarket & DDS subregional centre opportunity was keenly sought by both domestic and offshore investors,” he said.

“Offshore investors remain attracted to the Australia’s stable economy.”