Stockland Sells Another Neighbourhood Centre
Stockland has sold a shopping centre in Cleveland, Brisbane to syndicator Haben for $103 million. The sale represents a 13 per cent discount on Stocklands valuation of December 2017 of $118M.
The 15,650sqm Centre is home to Coles and Woolworths and approx 52 specialty stores, generating approx $147M in sales. The Centre straddles both sides of Middle Rd.
The Centre generates a fully let income of $7.1M and was sold on a yield of 6.93%. The property is 93.7% occupied however Stockland is expected to provide a $2.5M, 3 year rent guarantee on the vacant area and a further $0.5M in leasing incentives.
Stockland acquired the property in 202 for $63M and in 2017 acquired an adjoining car park from the local council for about $8.2m providing the Centre with further development potential.
The purhaser, the unlisted Haben Number 8 Trust buying the centre is seeking to raise $60.65m for the purchase which is expected to deliver an 11% total return to investors. Haben is planning to add an Aldi outlet to the Centre.