Alceon Sells Caboolture Square for $47m despite loss of KMart

Alceon has sold the Caboolture Square Shopping Centre in Brisbane’s north for $47m to IJ Financial Services.

Alceon acquired the Centre in 2016 from Charter Hall for circa $27.5m, based on a 10% yield. The recent sale provides the vendor with a 16.5% IRR on its 6 year investment.

Caboolture Square is a 16,300sqm Sub Regional shopping centre, anchored by a 3,691sqm Coles supermarket and supported by 28 specialty stores. The Centre is located on a 1.6ha site in the heart of the Caboolture CBD and provides parking for over 750 cars. Up until June last year, the Centre was also anchored by a KMart store which elected not to renew its lease at the Centre after a 34 year trading history.

Whilst Alceon attempted to re-lease the space, a decision to sell the Centre, off market was ultimately taken.

IJ Financial Services settled the property in May and appointed First Asset Management to commence the re-positioning of the ex-Kmart space with plans to sub divide the 7,400sqm tenancy into a range of smaller tenancies targeting Food & Beverage, Entertainment, Discount stores and other services. According to leasing materials, Lincraft and the Reject Shop are committed to take up space at the Centre.

IJ Financial are hoping the long term growth in the region will assist to build traffic to the Centre.

A new suburb at Caboolture West, which will eventually be home to 70,000 residents, has been selected by the Palaszczuk Government’s growth areas delivery team as a pilot site to accelerate land supply in Southeast Queensland. The Caboolture West local plan area is approximately 5km west of Caboolture, 6km from Caboolture Square Shopping Centre, and 54km north of Brisbane.

The plan is to transform the rural space west of Caboolture into a bustling city, housing 70,000 residents. Caboolture West as a whole will be roughly 6,600ha and will accommodate 30,000 homes, 12 schools, 6 retail hubs, a TAFE, a private hospital, district sports fields and a town centre.

IJ Financial Services also acquired the Benowa Gardens Shopping Centre from Stockland in 2020 for $40m, reflecting a 6.3% yield.

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