Mount Pleasant Centre Mackay sells for $162.5m as property demand grows

Described as one of Australia’s ‘strongest performing’ sub regional shopping centres, Mount Pleasant Centre has sold for a tremendous price.

Mount Pleasant Centre has been sold for $162,500,000, September 2021. Picture: Contributed

A major Mackay shopping centre has sold for a whopping $162.5 million amid strong investor demand.

Melbourne-based fund manager Fawker Property has bought Mount Pleasant Centre after negotiations with CBRE’s Simon Rooney and James Douglas on Vicinity Centres’ behalf.

Mr Rooney said the centre’s strong trade, dominance on Mackay’s northside and income growth were drawcards combined with its strategic location within a growing economic hub.

The 22,519sq m centre services 112,520 Mackay residents.

“The centre benefits from its strategic location within Mackay region which has a diverse and dynamic economy, underpinned by the significant coal deposits in the Bowen and Galilee Basins, supported by the region’s standing as one of the largest sugar-producing regions in Australia,” Mr Rooney said.

“Mount Pleasant Centre was one of the strongest performing regionally located, sub regional shopping centres to be offered to the market in Australia in many years.

“The key major tenants – Coles, Woolworths and Kmart – perform above industry averages, as does the centre’s food, service and convenience-related specialty component, which underpinned significant interest from buyers targeting sub regional assets with a non-discretionary retail focus.”

Rural View resident Leonie Chataway, pictured with grandson Korbin Hulme-Moir, 2, at Mount Pleasant Centre. Picture: Heidi Petith

Mr Rooney said investors had shifted focus to buying “high quality” subregional shopping centres at “record” prices reflected in the $162.5 million Mount Pleasant sale with a net passing yield of 6.46 per cent and a fully leased yield of 6.55 per cent.

CBRE stated Australian retail sales had surged 82 per cent to $2 billion between the first quarter and second quarter of 2021 with almost $1.3 billion in subregional assets traded in the second quarter of 2021.

The subregional trade was almost double the same period last year and 16 per cent above the second quarter in 2019.

Mount Pleasant Centre has sold for a whopping $162.5 million to a Melbourne-based investor. Picture: Rae Wilson

“(Sub-regional shopping centres) (have) performed well during the dislocation caused by the pandemic, demonstrating net operating income stability and transparent income growth,” Mr Rooney said.

Other notable recent sales include Fawkner buying Mirrabooka Square in Western Australia from the Perron Group for $195 million, the DeLutis Family snatching up CS Square in Victoria for $36.5 million, Antunes Group buying Hallett Coves Shopping Centre in South Australia from the Makris Group for $71 million and MA Financial acquiring Stockland Bundaberg for $140 million.