Fawkner Property has acquired Stockland Cairns in an off-market deal for $146 million reflecting a core capitalisation rate of 6.75%.
The 48,943sqm centre is anchored by two Coles and Woolworths with combined sales of more than $91 million together with Big W and Target, 11 mini-major tenants including JB Hi-Fi, Rebel sport and BCC Cinemas. The centre also benefits from 100 specialty stores, a 750-seat food precinct, a six-screen cinema and a new playground and seven pad sites. The tenancy mix is dominated by national retailers which represent 89% of total centre GLA and 83% of centre income.
The centre sits on an 11ha site located on the Bruce Highway, the main southern arterial road accessing Cairns.
The deal was successfully negotiated off-market by Simon Rooney, Head of Retail Capital Markets – Pacific at CBRE Asia Pacific.
In Stockland’s latest Strategy Update this week, the Group flagged the need to de-weight its retail exposure with further asset sales. The sale of the Cairns Centre comes as the group has written down its book values by more than 14 per cent.
Fawkner has acquired several Centres in recent months with the acquisition of Mount Pleasant Centre for $162.5m, Taralgon Centre Plaza for $84.5m and The Square Mirrabooka for $195m. The Cairns asset will take Fawkner’s assets under management to over $1.5 billion.
The Centre will sit in Fawkners’ Essential Service Trust No.17 (EST17) which will made available to investors in the first half of the calendar year 2022.
Fawkner Property’s General Manager of Funds Management, Stuart Fox said the transaction was a fantastic result for both parties given Fawkner’s strict focus on Essential Service assets and community-based town centres, “in a market that has moved a lot in recent months, we are delighted to acquire such a prominent and high performing centre that is heavily weighted towards Essential Services tenants. CBA have been a great partner in financing the transaction.”
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