Oasis Shopping Centre part-owner Abacus acquires 60 per cent it doesn't own of the Gold Coast mall for $103.5m
A property group has spent $103.5 million acquiring the 60 per cent of the Oasis Shopping Centre it doesn’t already own.
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Oasis Shopping Centre part-owner Abacus Property Group has spent $103.5 million acquiring the 60 per cent of the Broadbeach mall it doesn’t already own.
Abacus entered into a 40-60 joint venture partnership with private equity firm KKR to buy the centre for $103.5 million in 2015 with Abacus engaged to manage the property including leasing and development.
In recent years the partners have undertaken new leasing campaigns to attract a new mix of tenants at the centre.
A new food and beverage precinct was also created facing Victoria Mall and involved locally-famous restaurant Mario’s refurbishing its premises and new restaurants such as Harajuku Gyoza moving to the centre.
In 2017, Cotton On signed a 10-year lease to move into 800sq m on the same floor while Abacus also managed to lure mini-major Priceline to the ground level of the three-level centre.
In an ASX statement, Abacus said the centre’s repositioning had pushed occupancy to 96 per cent and a WALE of 5.2 years.
“Full control of the asset will allow Abacus to pursue future opportunities and to continue to reposition the asset towards office, health and beauty services and other uses, with the Oasis Centre becoming acknowledged as the commercial hub of Broadbeach,” Abacus said.
Abacus and KKR put Oasis on the market in 2019. At that point its WALE was 5.8 years and income was $13.8 million.
One agent told the Bulletin that Abacus was looking for between $180 million and $190 million for the property.
Oasis is a 24,399sq m centre, on the corner of Surf Pde and Victoria Ave opposite The Star Gold Coast. The centre is anchored by Woolworths and the Broadbeach Tavern and has approximately 120 specialty stores.
BROADBEACH'S OASIS SHOPPING CENTRE HITS THE MARKET
October 15, 2019
THE Oasis Shopping Centre in Broadbeach is back on the market with a bolstered tenant line-up and price expectations exceeding the $103.5 million the mall sold for four years ago.
The 30-year-old centre is being sold by part-owner Abacus Property Group, which entered into a joint venture with private equity firm KKR to buy the property in 2015.
Oasis is a 24,399sq m centre, on the corner of Surf Pde and Victoria Ave opposite The Star Gold Coast. The centre is anchored by Woolworths and the Broadbeach Tavern and has approximately 120 specialty stores.
In 2016 Abacus embarked on a major $25 million refurbishment of the centre to include new flooring, lighting and amenities. The monorail, which connected the Oasis to The Star Gold Coast casino, was removed to make way for additional office space.
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A new food and beverage precinct was also created facing Victoria Mall and involved locally-famous restaurant Mario’s refurbishing its premises and new restaurants such as Harajuku Gyoza moving to the centre.
The tenant line-up has been strengthened in the past two years. Earlier this year arcade Level Up opened on level one in a 374sq m tenancy. In 2017 Cotton On signed a 10-year lease to move into 800sq m on the same floor while Abacus also managed to lure mini-major Priceline to the ground level of the three-level centre. Office tenants include Ignite Travel Group, which was recently bought out by Flight Centre, and insurer Allianz.
JLL’s Jacob Swan and Sam Hatcher are marketing the property in an expressions-of-interest campaign closing on November 7.
It has a fully-leased net income of $13.8 million and weighted average lease expiry by income of 5.8 years.
According to marketing materials, there is potential to add a further 370sq m of space to level two and 3373sq m to level three.
A Gold Coast agent who works in the Oasis Centre said he expects the sale price to top the $103.5 million figure from four years ago.
Abacus has been slowly selling off its Gold Coast assets.
Earlier this year it sold 169 Varsity Pde in Varsity Lakes for $14 million.
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