Lendlease managed Australian Prime Property Fund Retail will sell 50% stake in Brisbane’s Westfield Carindale, one of Australia’s leading super-regional shopping centres.
CBRE’s Head of Retail Capital Markets – Pacific, Simon Rooney and Colliers International’s Head of Retail Investment Services – Australia, Lachlan MacGillivray have been appointed to sell the 50% interest on behalf of the Lendlease-managed Australian Prime Property Fund Retail.
”A 50% stake in one of Australia’s leading super regional shopping centres, Westfield Carindale, is to be offered for sale amid heightened interest in core retail investment opportunities,” said CBRE in a statement.
The remaining 50% interest is owned by the listed vehicle Carindale Property Trust (CDP). Scentre Group, the owner and operator of Westfield living centres in Australia and New Zealand, will retain management of the centre.
The Brisbane centre is the 12th largest shopping complex in Australia and is ranked 9th for total moving annual turnover performance in the 2019 Shopping Centre News ‘Big Guns’ publication.
CBRE’s Simon Rooney said the sale campaign was expected to generate significant interest, given the obvious quality, scale of the offering and heightened demand for core retail assets.
“Investors are now seeing attractive relative value in the retail sector and are moving on high quality retail plays given the unprecedented compression which has occurred in the Australia’s prime CBD office and super prime industrial markets,” Rooney said.
“Demand for core retail assets is increasing, primarily from major offshore investors, who see that retail has been oversold. This is presenting highly strategic opportunities to acquire assets which provide accretive, sustainable returns and a diversified income and asset base.”
“The fundamentals of Australian retail remain attractive from a global perspective, with population growth among the strongest of the OECD countries, low supply per capita and a stable economy, with a recovery in wage growth to drive discretionary spending,” Colliers International’s Lachlan MacGillivray said.
“In the case of Westfield Carindale, the centre’s low site utilisation and the opportunity for intensified development, including residential, commercial, short-term accommodation and retail expansion, will help drive considerable buyer interest.”
Westfield Carindale is situated in an affluent quarter of Brisbane’s south‑eastern suburbs, approximately eight kilometres from the Brisbane CBD, servicing a trade area population of approximately 679,460, which generates $9.7 billion in total retail expenditure.
Providing a gross lettable area of 139,605sqm, the centre is ranked in Australia’s top 10 for total moving annual turnover, at $880.0 million, and is forecast to benefit from a new generation David Jones store which opened in November 2019, in addition to the introduction of a market leading Kmart discount department store.
Recognised as one of Brisbane’s leading retail and lifestyle destinations, Westfield Carindale is securely anchored by a refurbished and consolidated David Jones, Myer, Coles, Woolworths, a new Kmart, Big W, Target and an Event Cinemas, together with 23 mini-majors, 291 specialty tenants, 51 kiosks and six offices.
It also includes a Home and Leisure Centre and the recently acquired Millennium Boulevard.