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Stockland Cairns. Source: CBRE
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  • Fawkner Property buys a prominent double supermarket-anchored shopping mall in the Cairns region from Stockland (SGP)
  • The transaction was completed at a book value of $146 million as of 30 June 2021, representing a core capitalisation rate of 6.75 percent
  • The centre boasts two high-performing supermarkets, Coles and Woolworths, which have combined sales of more than $91 million
  • The centre will be incorporated into Fawkner Property’s diversified Essential Service Trust No.17 (EST17), which will be accessible to investors in the first half of 2022
  • Shares in SGP are down 2.65 per cent to $4.40 at 1:30 pm AEDT

Essential services asset manager Fawkner Property has bought a prominent double supermarket-anchored shopping mall in the Cairns region from Stockland (SGP).

The asset, which has been acquired off market in recent days, is known as Stockland Cairns.

The transaction was completed at a book value of $146 million as of June 30 2021, representing a core capitalisation rate of 6.75 percent. The transaction is scheduled to close in the third quarter of fiscal year 2022.

The hub has a landholding of 111,300sqm and is located on the Bruce Highway, the primary southern artery approaching Cairns with an annual vehicular volume of 13.4 million cars.

The centre boasts two high-performing supermarkets, Coles and Woolworths, which have combined sales of more than $91 million.

It’s also backed by three big tenants, 11 mini-major tenants — including JB Hi-Fi and Rebel Sport — 97 speciality shops, and seven pad sites. National retailers dominate the tenancy mix, accounting for 89 per cent of total centre gross lettable area and 83 per cent of total centre revenue.

Stuart Fox, General Manager of Funds Management at Fawkner Property, said the acquisition was a “wonderful result for both parties” given Fawkner’s tight focus on essential service assets and community-based town centres.

“In a market that has moved a lot in recent months, we are delighted to acquire such a prominent and high performing centre that is heavily weighted towards Essential Services tenants,” he said. “CBA have been a great partner in financing the transaction.”

Simon Rooney, Head of Retail Capital Markets – Pacific at CBRE Asia Pacific, negotiated the acquisition off-market.

The centre will be incorporated into Fawkner Property’s diversified Essential Service Trust No.17 (EST17), which will be accessible to investors in the first half of the calendar year 2022.

The Commonwealth Bank of Australia’s Corporate Bank, a Fawkner Partner, is funding the centre as well as the larger EST17. The trust will increase Fawkner’s assets under administration to more than $1.5 billion in essential services funds.

Shares in SGP are down 2.65 per cent to $4.40 at 1:30 pm AEDT.

SGP by the numbers
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