Charter Hall snares Campbelltown Mall for $197m
Charter Hall Group has bought Campbelltown Mall in Sydney’s west for $197 million in the biggest individual sub-regional shopping centre sale so far this year.
Perth-based Perron Group offloaded the centre after putting it on the market in February, amid expectations it would sell for around $200 million.
Charter Hall has created a new wholesale property partnership for shopping centre assets and will co-invest with MTAA Super to complete the Campbelltown deal.
Charter Hall will manage the partnership, to be known as the Charter Hall Prime Retail Fund, and will contribute $46 million towards the purchase, representing an initial 38% investment.
The sale reflected a market capitalisation rate of 6%.
JLL’s Simon Rooney facilitated the deal and says a dearth of sub-regional shopping centres offerings so far this year added to the interest in the property.
“There has been a relative shortage of quality retail investment opportunities of significant scale in 2016, so transactions have remained competitive,” he says.
“Campbelltown Mall is the largest individual sub-regional shopping centre sold this year following divestments by Vicinity Centres, who have been the major sellers and source of sub-regional product in 2016.”
Campbelltown Mall has a gross lettable area of 42,040sqm and has tenants including Coles, Kmart, Target, Woolworths and Aldi.
It also has a significant representation of mini majors, including The Reject Shop, Ronis, Dollar King, Filled with Fruit & Deli, Priceline Pharmacy, Shopsmart Wholesale Pharmacy, and Best & Less. There are about 84 specialty shops and 1788 car parks.
Charter Hall head of retail Greg Chubb says Campbelltown Mall will help the fund attract more investors and grow the platform.
“The property is the seed asset for CPRF, which will focus on acquiring and actively managing larger convenience based retail centres with strong growth potential via leveraging Charter Hall’s extensive retail management platform,” Chubb says.