Stockland to offload two commercial properties for $200m

Stockland is offloading two commercial properties for close to $200m as it shifts its focus to logistics and business parks.

Stockland chief executive, Mark Steinert. (The Australian/Chris Pavlich)

Developer Stockland is offloading two of its commercial properties for close to $200 million as it shifts its focus to logistics and business parks.

In a statement to the Australian Securities Exchange, Stockland said the assets included retail complex Stockland Wallsend in Newcastle and an office building at 77 Pacific Highway, North Sydney.

The assets are unconditionally contracted for $81m and $112.35m respectively.

Stockland (SGP) managing director and CEO Mark Steinert said the divestment of the two assets was in line with their strategy to release capital for reinvestment.

“It takes the total value of our commercial property asset divestments to $306m for the financial year to date,” Mr Steinert said.

In a presentation to the Macquarie Conference last week, Mr Steinert said the group “remained focused on building its logistics and business parks portfolio with an identified $600m development pipeline the near-term priority”.

“Returns from these developments will be attractive, given they are to take place on land already owned by Stockland which was either purchased a couple of years ago and hence well in the money, or will benefit from densification,” he said.

A note by Macquarie Research on the listed property sector said the news flow around retail, where the bulk of Stockland’s capital was employed, would remain challenging.

Despite this, the note said Stockland was in a good position to deliver earnings per share (EPS) growth of more than 5 per cent.