Private commercial property investment and management company, Precision Group, has put a half share of two prized CBD retail assets in Adelaide and Brisbane on the market.
The Sydney-based property group has announced it will sell stakes of the MacArthur Central Brisbane and Adelaide Central Plaza shopping centers, which are worth about $800 million in total, either in one line or individually.
Precision, founded by Shaun Bonett in 1994, has owned Adelaide Central Plaza since its development in 2000 and MacArthur Central for the last 10 years.
Bonett said both the centres have gone through a long journey from core-plus assets to core institutional grade and now is the right time to take on a partner.
The MacArthur Central shopping centre, anchored by the only full-line Woolworths supermarket in the Brisbane CBD, a Big W discount department store and Australia’s largest Apple store, together with JB Hi-Fi, 39 specialty shops and kiosks, provides a total gross lettable (GLA) of 15,085 sqm.
The shopping centre boasts a luxury brand precinct that includes Oroton, Tag Heuer, Hardy Brothers, Hugo Boss and provides the ongoing opportunity to add significant further value via the progressive tenancy reweighing towards additional international and high-end luxury brands.
Adelaide Central Plaza, a luxury based major CBD shopping complex anchored by a 22,922sqm David Jones department store, Chemist Warehouse and Tiffany & Co mini-majors, 44 specialty shops and kiosks, provides a total GLA of 27,801sqm. The centre sits in the epicentre of Adelaide’s super-prime retail precinct. It centre also holds the prospect of having a future residential tower being developed above it.
“Investors remain very attracted to major Australian CBD retail assets for their defensive nature & strong income growth, value add profile,” said Simon Rooney, JLL’s head of Retail Investments – Australasia.
“The drivers of CBD retail trade continue to remain strong and are being fuelled by booming international tourism and the steady inflow of international retailers,” Rooney said. “There is now significant potential for owners to capitalise on this increasing demand for limited prime CBD retail space from new and existing international retailers, each trying to establish and grow in the Australian market.”
The Brisbane CBD is currently undergoing a transformation with the Brisbane City Council completing their full upgrade of Edward Street between Queen Street Mall and Charlotte Street as well as the Cross River Rail, a rail link connecting Dutton Park in the south, to Bowen Hills in the north, with 5.9km of tunnel under the Brisbane River and CBD.
“The upswing in tourism in Queensland will drive demand for discretionary retail such as fashion and food and beverage,” Rooney said.
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