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News release


Sugarworld Shopping Centre in Cairns sells for $24.75 million

Sugarworld Shopping Centre has been sold to Shopping Centres Australia (SCA) on behalf of IRAPT

​Sugarworld Shopping Centre has been sold to Shopping Centres Australia (SCA) on behalf of IRAPT for $24,750,000 in a transaction negotiated by JLL's Sam Hatcher and Jacob Swan.

Sugarworld Shopping Centre is a convenience-based neighbourhood centre, located 15kms south of the Cairns CBD. The centre is anchored by a Coles Supermarket, and is supported by 12 specialty retailers and a Coles Express service station pad site.

"The Coles Supermarket (also encompassing Liquorland and Coles Express outlets) accounts for 66% of the shopping centre's fully leased net income, and has a strong 3.7% MAT year on year growth," said JLL's Director of Retail Investments, Sam Hatcher.

"The centre will continue to benefit from the forecast 3.7% average annual population growth in the Main Trade Area between now and 2031," he said.

National Director of Retail Investments, Jacob Swan said, "the centre attracted a strong level of interest from institutional investors, syndicators and high net worth individuals as a result of the extensive 10.91 year WALE (by income) and the 20-year Coles lease, providing outstanding long term security."

Neighbourhood transaction volumes in Queensland increased by 15% in the last 12 months to September 2017 despite being 10% lower on a national basis over the same period.

The results highlight the depth of activity and opportunities in Queensland, while other markets around the country remain more stock constrained.

"We're seeing high levels of demand for non-discretionary based shopping centres compared with other shopping centre formats, attracting interest from a range of investor groups," said Swan. "Private investors and syndicates have accounted for the majority of neighbourhood shopping centre acquisitions in the last year ($301.7 million), followed by listed groups ($228.1 million) and unlisted funds ($217 million)."

Tourism in far north Queensland injects $4.7 billion* into the region's economy, with over 1.04 million visitors to Cairns last year.

Sugarworld Shopping Centre is currently the only centre with a full-line supermarket in the Main Trade Area. The MTA is anticipated to have the retail expenditure grow from $325.3 million now to $790 million in 2031, representing an average annual growth of 6.1%.