Commonwealth Super to offload $600m stake in Brisbane’s Indooroopilly shopping centre

Commonwealth Super has put up for sale its stake in one of Brisbane’s largest shopping centres as major investors hunt for assets amid a post-pandemic retail recovery.

Commonwealth Super Corporation is selling its stake in Indooroopilly Shopping Centre. Picture: Richard Walker

Commonwealth Super Corporation has put up for sale its stake in one of Brisbane’s largest shopping centres, with a listing that’s expected to achieve over $600m as retail makes a post-pandemic recovery.

Colliers has been appointed to sell the 50 per cent stake in Indooroopilly Shopping Centre on behalf of the CSC and its investment manager AXA.

“The site benefits from surrounding high-density development and is subject to a higher order planning framework which allows for significant mixed-use development opportunities in the long-term, including 90,000 sqm of additional GFA on existing landholdings adjoining the centre,” said Lachlan MacGillivray, Colliers’ managing director of retail capital markets.

Indooroopilly Shopping Centre, located 8.5km from the Brisbane CBD, is one of the best performers in Queensland, catering to both a high-end market with designer stores as well as average consumers with a number of department stores including David Jones as well as H&M and Uniqlo within the centre.

It is anchored by Coles, Woolworths, ALDI, Myer, David Jones, Kmart, Target, Event Cinemas and has some 320 tenants across all key categories.

Indooroopilly Shopping Centre is anchored by Coles, Woolworths, ALDI, Myer, David Jones, Kmart, Target, Event Cinemas and has some 320 tenants across all key categories. Picture: Richard Walker

The sale of CSC’s stake in Indooroopilly Shopping Centre arrives as JLL and CBRE’s campaign to sell a 25 per cent stake on behalf of a Dexus-run fund comes to an end.

AMP Capital’s shopping centre fund, which holds the 25 per cent interest in the Brisbane mall, had previously waived its right to acquire the stake but is thought to be again weighing its options.

Dexus is in the process of buying the management of the fund, with an interest in managing the centre as part of the fund, sources said. AMP hold rights to managing the centre until 2027.

The centre, located 8.5km from the Brisbane CBD, is one of the best performers in Queensland. Picture: Renae Droop

Colliers’ Mr MacGillivray said there was increasing confidence and appetite for larger shopping centres, noting the biggest direct retail property transaction on record – the $2.2bn sale of stakes in Pacific Fair on the Gold Coast and Sydney’s Macquarie Centre announced in October.

UniSuper and Cbus Property partnered with AMP Capital to take majority ownership of Pacific Fair and a half-stake in Macquarie in a deal advised by Mr MacGillivray alongside Morgan Stanley’s Tim Church.

“Investors are finding it increasingly difficult to place large sums of capital in ultra defensive, high quality assets, and Indooroopilly perfectly fits this criteria,” said Mr MacGillivray.

“Indooroopilly’s proximity to the Brisbane CBD … existing high density development planning framework and substantial adjoining landholdings provides significant growth and mixed-use development opportunities.”