Property Observer reports centre has new owners

THERE are reports the Centro Toormina shopping complex has changed hands.

THERE are reports the Centro Toormina shopping complex has changed hands.

Property Observer is reporting the for $65.5 million is part of the restructuring of the Centro Retail Australia property portfolio.

The sale is allegedly an 'in-house' transaction from the Centro MCS 16 syndicate.

The sale was concluded on December 14 with the price in line with the June 2012 independent valuation of the centre and 8.3% above the highest offer received for the Centre during the most recent March 2012 sale campaign.

It follows Centro selling its Surfers Paradise Mall for $162.5 million to a Challenger investor syndicate.

The 21,000 square metre mall was acquired for $25 million in September 2006 on a yield of 10.28% with Coles and Woolworths as the anchor tenants and 35 specialty stores.

The syndicate has not made any distributions to investors since July 2008 and its senior debt facility was due to expire in December last year.

In his update to syndicate investors, Gerard Condon, executive general manager of syndicates, said the sale to Centro Retail Australia saved the syndicate approximately $650,000 in sale agents commission.

He also said that any alternative strategies were likely to "take more time to complete and incur further transaction costs with no guarantee of improved value for syndicate investors".