QIC Confirms Sale of Noosa Civic Centre2 September 2019
QIC have confirmed the settlement of the sale of Noosa Civic Shopping Centre, first announced in November 2018.
The purchaser, Stockwell have paid $250m for the Centre which sits on a largely undeveloped 31ha of land. QIC had previously planned to add 25,000sqm to the Centre to include a new Target, Coles, Aldi and 50 speciality shops, however the Noosa Council refused the application in 2015 as it was not within the "planning intent for the site" and QIC subsequently also lost an appeal at the Land & Environment Court.
With a growing list of redemptions from wholesale investors against its retail assets, QIC are happy to see the transaction settle as planned.
The existing Centre was built in 2006, and comprises a sub-regional shopping centre anchored by a Woolworths Supermarket and Big W discount department store, two mini majors, 83 specialty shops and the ‘Emporium’ bulky goods precinct comprising 17 tenancies, one petrol station and a commercial and business precinct comprising 22 tenancies.
The Centre also offers car parking facilities for 1,416 cars. QIC had previously acquired the Centre off Stockwell in 2012 for $200m and are now selling it back to the same group.
Terms for the sale were agreed late last year and included a delayed settlement. Stockwell have since established the Noosa Civic Property Trust and raised approx $110m to fund the acquisition.
The fund proposes an income return of 7.5% to 8.0% p.a. average cash returns over the term and a total return of 12 – 13% with potential further development upside.