Stockland continues to off load non core assets at substantial discounts with a 2nd sale in Caloundra with the larger Caolundra North Shopping Centre now likely to be acquired by Charter Hall Retail REIT in a deal worth about $105m.
Stockland held the North and South Caloundra Centres in its book for $145M and a cap rate of 5.75%. It sold Caloundra South late in 2018 for $20.7M, leaving a book value of $124.3M.
A sale to Charter Hall at $105M would take the total discount across both centres to 13%, matching the discount take on the recent sale of their Cleveland Centre. Caloundra Shopping Centre comprises a fully enclosed sub-regional shopping centre anchored by both a Coles Supermarket and Kmart Department Store, plus 42 specialties, 3 kiosks, 3 ATMs and 3 pad-sites.
The centre is the largest retail destination in an expansive trade area and features the only DDS in the primary and secondary trade areas.
The Charter Hall Retail REIT has been a disciplined purchaser in recent years, acquiring 3 other centres over the past 18 months (Rockdale Plaza, Gateway Plaza and Campbellfield Plaza). It's stated strategy is to acquire larger sub regional centres which dominate their trade areas with solid income growth potential. Stockland has been reworking its portfolio and has also been seeking capital partners for major assets, including on its $800m Shellharbour centre.