A major Cairns shopping centre has changed hands for the first time in 23 years after hitting the market only four months ago.
Smithfield Shopping Centre has been snapped up by Alceon and CPRAM Investments for a reported $140m.
The new owners are Sydney-based.
National property group Lendlease took over management of the centre in 2020 following the exit of previous centre manager Dexus.
Smithfield Shopping Centre has sold for $140m. Picture: supplied.
Lendlease struck the deal on behalf of centre owners New South Wales Treasury Corporation (TCorp).
The sale was brokered exclusively by JLL’s Sam Hatcher and Nick Willis in conjunction with Stonebridge Property Group’s Carl Molony.
The substantial 12.4ha site is anchored by Coles, Woolworths, Kmart, and Event Cinemas. The centre is further supported by six mini-majors including a strong performing Dan Murphy’s and more than 90 specialty tenants.
The centre boasts an attractive weighted average lease expiry of five years by income.
Smithfield Shopping Centre has been sold after being on the market for four months. Picture: Brendan Radke
“The asset generates more than $200m per annum in major tenant sales alone and is the most productive shopping centre in Cairns, providing investors with solid fundamentals and an exceptional value proposition given the price point of the opportunity,” JLL’s Sam Hatcher said when the centre hit the market in February.
An emerging trend has major shopping centre yields at about the 7.5 per cent mark have resulted in sought after malls selling at discounted rates.
Stockland Cairns shopping centre on Mulgrave Road, Earlville before rebranding as Earlville Shopping Town. Picture: Brendan Radke
Significantly larger mall Stockland Shopping Centre, anchored by Big W, Woolworths, Target, Coles, a six screen cinema, and specialty stores sold for a similar price to the Smithfield centre in 2021.
New owners Fawkner Property later rebranded the centre as Earlville Shopping Town after paying $146m.
According to JLL Research, Queensland retail transactions accounted for more than 40 per cent of total sales volumes in 2022 with investors gravitating towards the Sunshine State.
In a lightning quick turn around the Smithfield Shopping Centre sale went through last week after expressions of interest in the centre closed on March 16.
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