BIG CHANGES FOR STOCKLAND’S NORTH SHORE PRECINCT
STOCKLAND is offloading its North Shore shopping centre in Townsville as it continues to sell down retail assets and rebalance towards more industrial and office property.
Stockland says a contract for sale has been exchanged for $17m on the centre — one of five of its centres contracted for sale since the end of the financial year.
The group released its 2019-20 results on Tuesday, showing a $14m loss — including some $580m in writedowns, mostly on shopping centres — amid the COVID-19 pandemic.
But the property group is riding a wave of government stimulus in home building with residential lot sales spiking, including at its North Shore community.
The North Shore shopping centre’s buyer is Ballina-based fund manager Clarence Property.
A Clarence Property spokeswoman said the fund manager was excited to add the centre to its portfolio.
“We feel there is substantial growth and value in the precinct and see benefits from neighbouring retailers such as Bunnings and Mcdonald’s, making it a long-term retail precinct for the area,” the spokeswoman said.
“We have a great mix of food and service-orientated retailers that are better suited to withstanding any potential impacts of COVID-19.
“We look forward to working with each of these retailers and continuing to improve the centre.”
Agents CBRE negotiated the transaction, noting the appetite and inquiry for neighbourhood shopping centres at a time of low supply of opportunities.
The sale represented the first neighbourhood centre transacted in Queensland since the COVID-19 lockdown.
A CBRE spokesman said neighbourhood shopping centres, because of their convenient retailing experience, had proved to be resilient through the pandemic, and that the North Shore centre had attracted interest from investors seeking defensive positions.
Stockland has sold almost $1bn worth of “non-core” retail assets in two years as it looks to reduce its portfolio, weighting away from retail and towards workplace and logistics assets.
Stockland CEO Mark Steinert said COVID-19 had particularly impacted its retail town centres and this had been offset by growth in communities, workplace and logistics.
Mr Steinert told a Strong Australia Network Townsville web conference last month there had been a 600 per cent increase in residential lot sales in two months at North Shore, coming off historic lows.