Stonebridge Property Group & JLL are pleased to announce the sale of Coles Kmart Plaza Townsville on behalf of Stockland and AMP for $47.25 million.
The asset was sold to a Sydney based Syndicate and reflects a fully leased yield of 5.46%.
Coles Kmart Plaza Townsville is a convenience focused sub regional centre, comprising a Coles, Kmart, 1 mini major, 21 specialties, 2 kiosks and 2 pad sites over 13,892 sqm.
The Centre is situated on a 42,000 square metre site, 5km south of Townsville Airport. The site is positioned diagonally opposite the regional shopping Centre Stockland Townsville and is exposed to approximately 20.2 million vehicles per annum. The property provides 731 at-grade car parks and has a weighted average lease expiry (by area) of 4.6 years.
The asset was sold following a select expressions of interest campaign in July 2021, with the successful bidder submitting an offer with a short due diligence period.
Jonathan Fox of Stonebridge said “This is a strong result and reinforces the strength of demand for convenience-based assets. Interstate buyers accounted for the significant majority of offers, despite being unable to inspect due to COVID lockdowns. The capital pool is deep for assets of this scale, creating highly competitive sale processes which are resulting in yield compression and limited conditionality.”
Jacob Swan of JLL said “The strong performing Coles and Kmart stores underpinned investment demand for this asset, with groups also attracted to the opportunity to add-value via specialty leasing and remixing. Convenient, essential service focused retail assets in immediate proximity to major regional shopping centres, as is the case for Coles Kmart Townsville, have traditionally always been held in high regard by investors.”