YFG Shopping Centres boosts Queensland portfolio with $267m acquisition

22 December 2021

YFG Shopping Centres has acquired Brisbane’s Strathpine Centre for $267 million in an off-market deal.

CBRE’s Head of Retail Capital Markets – Pacific, Simon Rooney negotiated the transaction amid strong ongoing interest in Queensland shopping centre investment opportunities.

“Queensland has been a clear standout in 2021, with $3.7 billion in retail deals transacted year to date, with significant confidence demonstrated in the Queensland retail market noting the limited COVID impacts,” Mr Rooney said.

“Investor interest has been underpinned by robust retail expenditure and forecast population growth, coupled with the fact that shopping centres in Queensland have been significantly less impacted by COVID than other major eastern seaboard markets.”

Mr Rooney added, “Following the strong momentum shift in the retail investment market in the second half of 2021, we expect transaction activity, sales volumes and pricing to continue to increase moving into 2022 across all national retail investment markets.”

Strathpine Centre is a major convenience-based sub-regional shopping centre sitting on a 17ha site, approximately 20kms north of Brisbane. With a gross lettable area (GLA) of 45,304 square metres, the Centre is anchored by Woolworths, Coles, Aldi, Big W, Target, Birch Carrol & Coyle 8 mini-majors and 114 specialties, 21 kiosks, and 2 external tenancies. The retailers generate approximately $190m in annual sales. The Centre is 95% occupied with a 3.6year WALE (by Income).

The Centre was sold by Blackstone who had acquired it in 2015 for $285m. Following attempts in 2017 to sell the portfolio of shopping Centres, Blackstone elected to sell the assets in an orderly process. Elanor Retail picked up Waverley Gardens in November 2018 for $178m, Clifford Gardens for $145m in April 2021 and Warrawong Plaza for $136m in October 2021.

The acquisition, which reflects a sub 6% yield, represents the latest acquisition for YFG Shopping Centres, a family business which controls over 20 shopping centres in south-east Queensland, having last year completed the staged acquisition of Mt Ommaney Centre from Vicinity Centres and Nuveen Real Estate for a total consideration of $379.5 million.