Centro Properties Group has bought a portfolio of shopping and bulky goods centre for $144 million, which is likely to be spun into another domestic fund.
The portfolio comprises seven properties, including the $29.4 million Katherine Oasis Shopping Centre in Katherine, Northern Territory; the $28.3 million Centro Home Bulky Goods Centre in Gladstone, Queensland; the $15.0 million Mt Hutton Plaza in Mt Hutton, New South Wales; the $11.3 million Maddington Village in Maddington, Western Australia; a $3.8 million property in Langwarring, Victoria; the $3.8 million Box Hill Bowl in Box Hill, Vic; and the $2.4 million Chapman Way Arcade in Geraldton, WA.
Centro Home is a development site with development approval for the construction of a 21,000 sqm bulky goods centre anchored by Bunnings. Centro has acquired the land and will fund the development through construction, which will be undertaken by Parmac Property Group.
Centro Home will be Centro’s first purpose-built bulky goods centre.
The Katherine Oasis Shopping Centre is an existing 7,200 sqm sub regional shopping centre, anchored by a Woolworths supermarket and Country Target together with 17 specialty shops.
Mt Hutton Plaza is a 4,700 sqm single level neighbourhood centre anchored by a Bi-Lo supermarket together with 13 specialty shops. This property immediately adjoins the Centro MCS 24 syndicate owned Lake Macquarie Fair Shopping Centre.
The Maddington Village is a 4,200m2 single level neighbourhood centre anchored by a Woolworths supermarket together with 14 specialty shops.
While Lot 3, Cranbourne – Frankston Road, Langwarrin, VIC adjoins the Centro MCS 18 syndicate owned The Gateway Shopping Village. The property comprises a BP Service Station and Video Ezy tenancy.
The Box Hill Bowl is a 2,300 sqm development site adjoining the Centro Whitehorse Shopping Centre and the Chapman Way Arcade is an enclosed arcade comprising 24 specialty shops which adjoins the Centro MCS 14 syndicate owned Centro Stirlings.
The $144 million of transactions also included $50 million of asset sales comprising Everton Plaza, QLD and Centro Innaloo, WA.
Centro has sold the Centro Innaloo in Innaloo, WA for $25.8 million and the Everton Plaza in Everton Park, QLD for $24 million.
“The $144 million of domestic property transactions reinforces Centro’s ability to source appropriate quality domestic shopping centres and Centro’s active asset management approach to dispose of assets which no longer meet desired investment criteria. Australia has a limited supply of retail property available for transactions so to successfully complete these acquisitions is a pleasing achievement,” Centro chief executive Andrew Scott said.
“The strong fund inflows for the current $149 million Centro MCS 37 domestic syndicate are exhibiting the continuing investor demand for retail property investment with cash for over 40% of the equity raising already received in the five weeks since launch.
“The recent acquisitions will predominantly be included in current or future Australian property syndicates to meet this ongoing investor demand for domestic as well as international retail property managed funds,” he added.
Centro’s fund manager Philippa Kelly said Centro’s willingness to dispose of non-core syndicated properties including Centro Innaloo in the Centro MCS 17 syndicate and Everton Plaza in the Centro MCS 19 syndicate has provided increased capacity to utilise freed up capital for planned future developments within both these syndicate portfolios.
“Centro considers that it and its co-investors in the Centro MCS syndicates will benefit from this active asset management approach to add further value,” she added.
Centro is expected to report its annual results to on Tuesday August 08, 2006.
By Adam Parsons
