$130m Shopping Centre Sale

Colliers International director retail investment services Mark WerrettPicture: The West Australian/The West Australian, 2015

$130m Shopping Centre Sale

Marissa Lague, The West Australian 2015

Colliers International has sold three shopping centres worth more than $130 million — two still under construction and one established centre — in three weeks.

Fund-through deals, which carry less risk for developers because buyers pay for construction of a project in instalments, were used to sell the two centres being built as interest in subregional and neighbourhood centres grows.

Property developer Peet sold the planned Lakelands Shopping Centre north of Mandurah to one of Australia’s biggest superannuation property trusts in a $100 million fund-through deal that should see the centre open late in 2016.

Industry Superannuation Property Trust (ISPT) bought the 7.8ha Lakelands site, to house a 21,170sqm centre, with a 5000sqm Coles, 6000sqm Kmart and 1540sqm Aldi supermarket, 38 specialty shops, a First Choice Liquor Store and Coles Express Service Station.

The three retail developments were sold by Colliers International director retail investment services Mark Werrett who said the deals reflected growing interest by developers and investors for similarly structured projects.

“The fund-through structure is becoming popular for developers as a way to secure project financing and an end take-out agreement,” Mr Werrett said. “This development is an excellent investment for ISPT in a growing corridor.”

Mr Werrett has sold Port Coogee Village, in a fund-through deal, worth approximately $22.1 million.

He said Australand would develop the 4430sqm centre, sold by its subsidiary Port Catherine Developments to Pradman Holdings No.2.

The Port Coogee centre is likely to be completed by June and will be anchored by Woolworths and BWS and 12 specialty tenancies.

In the third transaction, Mr Werrett sold the Craigie Plaza Shopping Centre in Perth’s north for $10.8 million to Charming Investments, reflecting a yield of 6.99 per cent.

The 2933sqm centre, anchored by an IGA supermarket, was sold in an off-market transaction by interests associated with local investors and supermarket operator Peter Grant.