Stockland offloads another Centre
Stockland continues to offload assets to raise capital to support their ambitions to head back into industrial & logistic assets. This week, Stockland confirmed the sale of Tooronga shopping centre in Melbourne's east to fund manager Newmark Capital for $63 million.
The Tooronga Centre sits on the corner of Toorak & Tooronga Roads, 8km south east of the Melbourne CBD. The centre comprises a Coles Supermarket & First Choice Liquor, with 30 predominantly non-discretionary specialty shops generating over $4.5m in net income on a fully leased basis.
According to Stocklands annual report, the Centre recorded sales to June 2018 of $110M with an average specialty occupancy cost of 13.9% and a weighted average lease expiry of 5.5 years.
The sale to Newmark represents a yield of 7.3% and a capital value of $7,021/sqm.
Stockland acquired the site in 2004 from Coles (subject to planning approval) for $30m and proceeded with plans for a mixed-use development, comprising residential, retail and office use. The overall development intended to include 785 apartments over 5 stages. Stockland proceeded with the development of the first 297 apartments which adjoin the shopping centre, but abandoned the remaining residential stages in December 2011 in line with its general exit from the apartment sector. Stockland sold off 7.7 hectares of the undeveloped land back to Coles who re-sold 5.4 hectares to St Kevin's College.
The sale was managed by CBRE.