Haben Re-sets Sub Regional Yields with Casey Central Buy at 5.4%

Haben Property Funds has established a firm foundation for sub regional shopping centre values with the acquisition of Casey Central Shopping Centre from M&G Investments for $225m.Haben’s price reflects an initial yield of 5.4%.

The centre is anchored by Coles, Woolworths, ALDI and Kmart, providing a Weighted Average Lease Expiry of 14.2 years (by income). The tenancy mix is heavily oriented towards non-discretionary and service-based retailers, with approximately 59% of the specialty GLA currently occupied by service, food catering and fast dining tenants which is highly sought after in the current market.

The Centre occupies a relatively low site coverage of approximately 30%, providing Haben some flexibility to drive further value from the real estate.

M&G bought the centre in 2016 for close to $220m from Scentre Group who acquired the property back in 2005. Once a small neighbourhood centre of 6500 square metres, Scentre transformed the Centre into a new 28,700-square-metre sub-regional shopping centre. M&G recently renegotiated the discount department store lease, converting the old Target to a modern KMart, with a fresh 15 year lease.

Lachlan MacGillivray, head of retail investment services at Colliers International, brokered the deal on behalf of M&G Investments.

Haben Property Funds have acquired 6 sub regional centres over the last 4 years from Stockland including Wallsend, Jesmond, The Pines, Caloundra and Cleveland. Casey Central is their largest acquisition.