The Perron Group have sold a half stake in Runaway Bay Centre for $128m in a deal with Greenpool Capital and Qualitas.
Runaway Bay Centre is a single level Regional shopping centre located approximately 11 kilometres north of Surfers Paradise on the Gold Coast. The Centre, managed and co-owner by Vicinity comprises Coles, Woolworths, Big W, Target and Aldi, three mini-majors, 92 specialties, 15 non retail & 15 other retail tenancies with a total NLA of 43,000sqm. The centre generates around 4.4million customer visitations per annum spending upwards of $272.6m pa.
Based on a June 2021 valuation, Vicinity hold their 50% interest for $107m with a 6.25% cap rate. Reports indicate that the deal with Qualitas & Greenpool was also priced at 6.25%, suggesting that Vicinity’s provisions for COVID impacts or vacancies may be overstated.
CBRE’s Simon Rooney facilitated sale campaign on behalf of the Perron group.
Mark Fischer, Qualitas co-founder and global head of real estate said, “We continue to see relative value opportunities in convenience-based retail centres, as the well-flagged structural and cyclical resetting of rents interplays with yields available on these assets compared to those in other defensive sectors.”
“Runaway Bay Shopping Centre is a dominant centre within its catchment, tenanted by high-performing, non-discretionary and national chain covenants, located within a strong growth catchment, with a significant underlying land holding with potential for future value add development.”
According to Vicinity’s reports, 50% of the Centre (by income) has a lease expiring in the next 12 months, providing the opportunity to remix the centre and reset rents for the next cycle.
The transaction is the latest in a number of deal in the sub-regional shopping centre market. Early today, Elanor Investors announced the acquisition of Warrawong Plaza for $136m, and the Fawkner Property Group acquired the Mount Pleasant Shopping Centre for $162m and in August, Sim Lian Metro Capital paid $133m for Cherrybrook Village Shopping Centre in Sydney,