March 2 2020 -
CPG & CVS purchase Great Western Super Centre for $84.5 million
Consolidated Properties Group and CVS Lane Capital Partners have kicked off the new year with the $84.5million acquisition of the Great Western Super Centre in what is the duo’s largest retail buy to date.
The purchase of the Keperra-based centre has pumped the pair’s retail portfolio up to $485 million, including seven shopping hubs complete, under renovation or in the pipeline throughout South East Queensland.
Consolidated Properties Group CEO & Chairman Don O’Rorke says 2019 was the most active year yet for the partnership, taking into account the purchase of Arndale Shopping Centre in October for $35.5 million, with a $15 million upgrade of that centre now underway.
“We will be undertaking an aesthetic upgrade to the entire Great Western centre, with the aim of attracting new tenants to improve the already robust retail offering,” Mr O’Rorke said.
“Great Western fits our strategy of acquiring established neighbourhood centres in high growth corridors – there are more than 1,500 new homes planned in the surrounding area, and this level of population growth warrants an improvement to major retail infrastructure.
Great Western Super Centre is located 10km north west of the Brisbane CBD and boasts 15,400sqm of floor space anchored by Woolworths and Aldi, alongside six mini majors and 44 specialty stores. The centre was purchased from a major institution who have owned the asset since 2013.
CVS Lane Capital Partners CEO Lee Centra says the Retail Partnership is looking forward to delivering on the refurbishment and leasing plans across their portfolio, with the possibility of further acquisitions and expansion on the cards.
“2019 was a very fruitful year for us, but it is really just the beginning,” he said.
“In 2020 we expect to be commencing work on a 17,000sqm retail and commercial hub at our $850 million Yeerongpilly Green community. We will also be putting the finishing touches on our upgraded retail centres at Palm Beach on the Gold Coast and Wilsonton in Toowoomba while continuing work at our Centre at Karalee in Ipswich.”
The sale of the Great Western Centre was negotiated by JLL’s Jacob Swan and Sam Hatcher.
“There is ongoing demand for non-discretionary anchored retail, particularly in metropolitan locations,” said Mr Swan.
” Furthermore, properties with strong underlying land value and long term future development potential are highly sought by investors.
“This investment opportunity offered scale in non-discretionary retail, which has historically been challenging to achieve. It was the second largest neighbourhood centre sale in the last 12 months.
“As retail continues to evolve, we will continue to see more shopping centres blurring the lines between the traditional classifications and transform into more hybrid-style shopping centre formats.
“While Great Western Super Centre is largely a non-discretionary anchored neighbourhood centre, there are a range of other home, health and lifestyle uses which cater to a growing local population.”