Commercial Property
Suburban Ipswich shopping centre sells for $37m
A SUBURABN Ipswich shopping centre has sold for close to $37 million.
Ipswich Homebase at West Ipswich sold for $36.25 million this week, close to $14 million more than what it sold for five years ago.
The centre is home to Fantastic Furniture, Spotlight, Forty Winks, Chemist Warehouse, T.K. Maxx and IGA supermarket and last sold in February 2013 for $23.5 million.
Sentinel sold the Ipswich Homebase to national property fund manager Primewest.
Sentinel Managing Director Warren Ebert said the sale, one of three nationally, proved as strong incentives for investors.
“The decision to sell is consistent with Sentinel’s strategy of buying at an opportune time and then selling based on our view of the market,” Mr Ebert said.
“The large format retail sector continues to perform, particularly in high-growth, well-established locations such as Ipswich, Dandenong and Nowra. The fact that these centres maintain full occupancy underwrites the interest from high-profile retailers to have exposure in this style of asset, in these locations.”
Sentinel has a total national portfolio of more than 40 assets.
Originally Published: www.qt.com.au
AM Australia Retail Property Fund acquired the Springfield Fair neighbourhood shopping centre from Charter Hall Retail REIT on a yield of 7.05 per cent.
Charter Hall Retail REIT is divesting smaller retail assets as it shifts its focus to larger, higher growth properties. The REIT offloaded three shopping centres for $91 million in November.
Situated on a 2.2-hectare site 16km east of the Ipswich CBD and 22km southwest of the Brisbane CBD, Springfield Fair was the first full line supermarket centre developed in the Springfield area.
The sale was negotiated by JLL on behalf of Charter Hall.
JLL national director of retail investments Jacob Swan said Springfield Fair benefited from “outstanding population growth” within the Ipswich local government area, the second highest in Queensland.
“The centre has a very strong history of occupancy and representation from a wide range of national tenants,” he said.
In the final quarter of 2017, $1.325 billion in major retail transactions were recorded in south east Queensland, including Benowa Village which was sold to a private investor for $49.5 million – the sharpest initial yield ever recorded at the time for a neighbourhood shopping centre in Queensland.
Completed in 1997 with a major refurbishment in 2006, Springfield Fair is a Coles-anchored, fully-leased centre with 6,318 square metres of lettable area.
Originally Published: theurbandeveloper.com
A SUBURABN Ipswich shopping centre has sold for close to $37 million.
Ipswich Homebase at West Ipswich sold for $36.25 million this week, close to $14 million more than what it sold for five years ago.
The centre is home to Fantastic Furniture, Spotlight, Forty Winks, Chemist Warehouse, T.K. Maxx and IGA supermarket and last sold in February 2013 for $23.5 million.
Sentinel sold the Ipswich Homebase to national property fund manager Primewest.
Sentinel Managing Director Warren Ebert said the sale, one of three nationally, proved as strong incentives for investors.
“The decision to sell is consistent with Sentinel’s strategy of buying at an opportune time and then selling based on our view of the market,” Mr Ebert said.
“The large format retail sector continues to perform, particularly in high-growth, well-established locations such as Ipswich, Dandenong and Nowra. The fact that these centres maintain full occupancy underwrites the interest from high-profile retailers to have exposure in this style of asset, in these locations.”
Sentinel has a total national portfolio of more than 40 assets.
Originally Published: www.qt.com.au
THE Ipswich City Council has given the first green light for its entity, Ipswich City Properties, to proceed with a $5.9 million acquisition of the Ipswich City Plaza.
On Tuesday afternoon councillors agreed to recommend the acquisition of the mixed-use building at 2 Bell Street.
The plaza consists of a lower-level retail complex with office accommodation on the seven upper floors.
It was offered for sale after the appointment of KordaMentha as receivers and managers of the plaza earlier this year.
In a non-binding agreement and subject to a due diligence process, Ipswich City Properties agreed to purchase the site for $5.9 million.
Stamp duty and legal costs are expected to increase the purchase price to about $6.25 million.
A report provided to councillors on the City Management, Finance and Community Engagement Committee noted the gross annual income of the plaza site was $705,343.
With about $575,000 in leasing and financing costs, the property would provide a surplus of $130,000 each year.
Ipswich mayor Andrew Antoniolli said the purchase of City Plaza significantly below market value “represented a once-only opportunity for the city”.
“Its strategic location will only increase in value as the adjacent redevelopment progresses,” he said.
The property is subject to a leasehold tenure and the agreement with head lessor, Queensland Rail, is due to expire in November 2077.
The purchase of the plaza by Ipswich City Properties will be funded through a $75 million loan agreement with the council, which also facilitated the entity’s $50 million purchase of Ipswich City Square in 2009.
Originally Published: www.qt.com.au
