October 16 2019 -
CPG & CVS add Arndale Shopping Centre to growing Retail Portfolio
CVS Lane Capital Partners and Consolidated Properties Group have acquired Arndale Shopping Centre for $35.5 million, with plans to invest up to $25 million in the Springwood centre.
Arndale Shopping Centre is the fifth retail acquisition for the Retail Partnership. Upon its completion, it is expected to bring the shared retail portfolio to more than $400 million.
The centre boasts approximately 11,000sqm of retail space, including 35 specialty stores anchored by Coles, which has recently signed a new ten-year lease.
Consolidated Properties Group Executive Chairman, Don O’Rorke, said Arndale was a strategic fit for the Retail Partnership, which targets underperforming neighbourhood centres in growth areas.
“The previous owner of Arndale Shopping Centre held the asset for 24 years and we saw the opportunity to create a contemporary retail environment with a high quality grocery, food, medical, health and wellbeing offering,” he said.
Mr O’Rorke said the centre has the potential to deliver strong returns once it is renovated to meet contemporary retail standards, with work expected to commence in late 2019.
“The rejuvenation of Arndale is anticipated to take about 12 months with the introduction of new retailers to the centre expected to create multiple job opportunities.
“Springwood is the central business district of Logan and therefore retail demand is underpinned not only by a growing resident population but also a thriving business community,” he said.
CVS Lane Capital Partners CEO, Lee Centra, said over the past five years the Retail Partnership with Consolidated Properties Group had invested significantly in either the development or upgrade of four other neighbourhood centres in South East Queensland and northern New South Wales.
“We currently have work underway at shopping precincts in Ipswich’s Karalee, Toowoomba’s Wilsonton and Gold Coast’s Palm Beach as well as Yeerongpilly Green in Brisbane – all of which are fast growing areas with a need for updated retail amenity, much like Springwood,” he said.
“Arndale has supported Springwood’s growing population for more than four decades. Our plan is to protect the interests of long-term tenants by undertaking a much needed structural and cosmetic upgrade of the centre, which will also invite interest from new retailers.”
“The centre’s position fronting the highway makes it easily accessible not only for local shoppers but also commuters, so the investment in Arndale Shopping Centre is a win for the broader community.”
The sale was negotiated by Stewart Gilchrist of Colliers International, who said the centre attracted very strong interest from retail investors and developers nationally.