$46m sale in works for Newcastle’s The Junction Fair

Newcastle’s The Junction Fair shopping centre.
Newcastle’s The Junction Fair shopping centre.

Property fund managers are snapping up neighbourhood shopping centres that can be repositioned to boost their performance, with Stirling Property Funds targeting The Junction Fair in Newcastle for about $46 million.

Neighbourhood shopping centres remain sought after as investors believe they can turn around the assets by introducing new retailers and supermarket anchors are performing well.

In the latest play, Stirling is seeking to buy the Newcastle centre that was put on the block by funds manager Fortius last year.

Stirling has launched an unlisted fund to back the move and will buy the centre for $46.67 million. It is seeking to raise about $27.8 million from investors.

Fortius bought the shopping centre for $32 million in 2014. It was marketed by Stonebridge and CBRE.

Stirling’s fund is forecast to provide an average net cash distribution of 8% per annum and total returns of 9.4% per annum.

This article originally appeared on www.theaustralian.com.au/property.