SYDNEY, 21 December, 2017. Aventus has divested a Large Format and Convenience Retail portfolio for a combined price of approximately $60.1 million in an off-market deal handled by JLL’s Simon Rooney, Stuart Taylor and David Mathews.
The portfolio comprised the Shepparton Home retail centre in regional Victoria and Tweed Hub near the border of NSW and QLD. The assets were acquired by separate purchasers, reflecting a 6.5% premium to the book value as at 30 June 2017 and a weighted yield of approximately 7.42%.
Shepparton Home is a dominant large format centre within the region, presented over a total GLA of approximately 13,661 sqm and anchored by leading national retailer Fantastic Furniture and featuring seven large format retailers and convenient at grade car parking for 417 vehicles. The well-established centre occupies a prominent 30,290 sqm site with significant frontage to Benalla Road and Midland Highway, approximately 3km west of the Shepparton CBD and 200km north east of the Melbourne CBD.
Tweed Hub is a well-established convenience retail centre presented over a total GLA of 9,757 sqm anchored by leading national retailers 1st Choice Liquor Superstore and The Good Guys and featuring 15 convenience, large format and service based retailers. The centre occupies a large and high profile site of 26,200 sqm positioned on Minjungbal Drive, a main arterial road connecting to the Pacific Motorway, approximately 35km south east of the Gold Coast and 105km south east of the Brisbane CBD.
JLL’s Australasian Head of Retail Investments Simon Rooney commented “It has been a very active year for the large format retail sector, with the most notable transaction being Home Hub Castle Hill and Home Hub Marsden Park being sold by JLL for $436 million earlier this year.”
According to JLL Research, transaction volumes for the large format retail sector 2017 at $768 million have
already exceeded 2016 levels.
Director of VIC Retail Investments, Stuart Taylor said “The portfolio attracted a strong level of interest from institutional investors, syndicators and high net worth individuals as a result of the assets being dominant within their respective catchments with a strong tenant profile of primarily national tenants.”
Mr Mathews added that, “Average yields for the large format retail sector as at Q3 2017 were 7.33% on a national level, showing a 70 bps compression from the same point in 2016.”