MFS Diversified Group has received development approval for the construction of a retail shopping centre at Kempsey, New South Wales.
The group will add the completed project, to be known as Riverfront Plaza, to its expanding trust portfolio of retail, commercial and industrial properties along Australia’s eastern seaboard and in New Zealand.
The shopping centre complex has a projected end value of $23 Million and is planned to be completed in September 2008 with an expected passing yield of 7.25% when fully tenanted.
The site is adjacent to the Macleay River, located at Belgrave and Verge Streets within the Kempsey CBD with high visibility from the Pacific Highway.
Demolition of the existing buildings including the Tattersalls Hotel which sits on part of the site, will commence in early March 2007.
The value of the trust is now around $400 million, up $100 million from December 2006.
MFT’s chief executive Brent Hailey said the enclosed centre will feature a full-line Coles supermarket and a Target store.
In addition, there will be 13 specialty stores comprising 1320 sqm.
MFT has also bought the Bay Markets shopping centre in Deception Bay for $4.25 million.
The trust is also entering into a development agreement with a partner to redevelop and extend the existing centre from 786 sqm to approximately 3,000 sqm with an anticipated end value of approximately $11 million.
The expansion is proposed to include the introduction of a convenience style centre.
On completion of the expansion and when fully tenanted, the centre is expected to produce a passing yield of 7.25%.
MFT is expected to settle on the purchase in April 2007.
Australian Property Journal
