Charter Hall exits retail centre in Mackay
Charter Hall Group is keeping up its retail property trading, finalising the sale of a Mackay shopping centre to Augustine Property for about $43m.
The sale of Sydney Street Markets in the Queensland city marked something of a breakthrough in the state’s relatively quiet retail market, as much of the action has been in the office market.
The off-market sale was brokered by JLL’s Jacob Swan, who declined to comment, as did the parties.
Charter Hall’s retail arm has been busy as both a vendor of smaller assets and also as a buyer. It earlier this year stepped up to buy Eastgate Bondi Junction shopping centre in Sydney, with the listed Charter Hall Retail REIT taking a stake alongside a wholesale vehicle.
The listed fund took a 20 per cent interest in the Bondi Junction asset for $25m on a 6.1 per cent initial yield in partnership, with the unlisted RP6 vehicle taking the remainder.
The listed fund also sold off Dickson Woolworths in Canberra, Rosebud Plaza in Victoria and Southgate Square in SA, which alongside the Mackay sale that was flagged last month, saw it reap about $290m.
The company said of its results that the sale of the four assets was in line with prevailing book values and demonstrated the resilience and attractiveness of its assets, and suggested the capitalisation rate expansion cycle for convenience retail assets was nearing an end.
The sales also significantly reduced the Charter Hall fund’s gearing and provided capacity for reinvestment in higher growth opportunities.
The Mackay centre was picked up by Queensland operator Augustine Property, which is focused on residential and commercial property developments.
It has a track record of projects including Hope Island Marketplace, featuring Woolworths, Aldi and 30 speciality stores, as well as the luxurious Ormi Terrace residences in Eight Mile Plains on Padstow Rd.
It also completed projects in Sunnybank Hills and the first stage of Communa in Woolloongabba. It is undertaking the next stage, as well as the Kepnock Town Centre.