CBA Super Sells Mount Pleasant Mall

The Commonwealth Bank Super Fund has sold the Mount Pleasant Shopping Centre to Fawkner Group for $162m.

The deal struck reflects a net passing yield of 6.46%.

The 22,519sqm mall is managed by Vicinity Centres and comprises a Coles, Woolworths, KMart and 70 specialty stores.

Located in Mackay North Queensland, the Centre is one of the top performing Centres for its size in the country, ranked number one in 2020 by Shopping Centre News, recording sales of $14,262/sqm.

The Mackay acquisition is Fawkner’s fourth institutional-level deal this year alone, following the $195m acquisition of The Square Mirrabooka in WA. In March 2021, Fawkner acquired Traralgon Centre Plaza from Stockland Group for $84.5m and a portfolio of fuel assets from Waypoint REIT.

Mount Pleasant Shopping Centre is situated on a large 8.7ha, with ample car parking and further development potential should the need arise.

Key to the strong performance of the Centre is the design of the Centre, the demographics of the catchment and the nature of the competition.

The Centre provides convenient access to car parking, an easy mall layout to move between anchor stores (with limited areas of minimal customer flow) and a tenancy mix which compliments the major stores.

Mackay has a diverse and dynamic economy underpinned by significant coal mining activity in the Bowen and Galilee Basins, and supported by one of the largest sugar-producing regions in Australia. These activities underpin a an affluent, high spending demographic with household incomes ($91,115), some 12% above the non-metro QLD benchmark.

Retail spending in the trade area equates to $1.5bn, and is expected to reach $1.9bn by 2031, including over $579m in the PTA. Mount Pleasant captures approximately $260m pa of this retail expenditure.

The Mall competes with Lendlease’s larger Caneland Shopping Centre, just 3kms south, but importantly on the other side of the Pioneer River which divides the region. Canelands is a much larger Centre at 65,000sqm in size with 2 supermarkets, 2 discount department stores, 1 department store and 158 specialty stores.

CBRE’s Simon Rooney and James Douglas brokered the deal with Fawkner Property Group.

The Mackay acquisition is Fawkner’s fourth institutional-level deal this year alone, following the acquisition of The Square Mirrabooka for $195m, the acquisition of Traralgon Centre Plaza from Stockland Group and the acquisition of a portfolio of roadside retail assets from Waypoint REIT.

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About Warwick Petschack

Warwick has over 25 years of property investment and management experience. Principally responsible as Managing Director for Capital Management Australia and Joint Managing Director for Chauvel Capital Partners and Editor of Australian Property Markets News.

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