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News release

Australian Prime Property Fund Retail and the Westfield Group to sell Cairns Central

One of Queensland's Most Successful Regional Shopping Centre's on the market

SYDNEY, 1 AUGUST 2011 – The Australian Prime Property Fund Retail (APPFR) and the Westfield Group has mandated Simon Rooney of Jones Lang LaSalle to conduct an on-market sale process to sell a 100% interest or 50% joint venture interest in one of Queensland's most successful retail assets, Cairns Central regional shopping centre.

The sale process will enable incoming purchasers to bid on a 100% interest or on a 50% interest, the later requiring the incoming purchaser to nominate either APPFR or Westfield as its preferred joint venture party. APPFR and Westfield may also bid for each other's 50% interest. The sale process will be overseen by an independent probity officer, to ensure a fair and transparent process is provided for each participating party.

This sale campaign commences this week and follows the keenly contested sale of The Gandel Group's 50% interest in Northland super-regional shopping centre in Victoria, which was sold to the Canada Pension Plan Investment Board for $455 million at an initial yield of 6.25% in May 2011, and a 25% interest in Westfield Doncaster super-regional shopping centre also in Victoria, on behalf of the Asia Property Fund to ISPT for $350 million at an initial yield of 5.75% in December 2010.

Cairns Central is a strong trading and fully enclosed regional shopping centre, presented over a total GLA of 52,725 sqm (approx).

It is securely anchored by a two level Myer department store, a Target discount department store, Coles and BI-LO supermarkets, a six screen Birch Carroll & Coyle cinema complex, along with JB Hi-Fi, five mini-majors and some 174 specialty stores (approx.). In the heart of the vibrant Cairns Central Business District, the Centre is the largest regional shopping centre in Far North Queensland, and is anchored by the only department store in the region.

Mr Rooney said the Centre's strategic location and unmatched anchor tenant offering in the region enabled it to be a major beneficiary of a significant pool of retail expenditure, generated by both a significant tourism market and a densely populated catchment. Importantly, this is reflected in the Centre's strong trading performance metrics.

"The Cairns Central offering is a rare and attractive opportunity to acquire a 100% interest or enter into a joint venture opportunity with either Lend Lease or Westfield, in a secure regional shopping centre," he said.

“Major regional holdings, particularly the quality of Cairns Central, have and continue to be tightly held and highly sought from offshore investors and within the local institutional investment community, as demonstrated by the strong interest shown in the recent Northland, Westfield Doncaster, Lakeside Joondalup and Westfield Whitford City sale processes, over the last two years.

"Cairns Central is a modern, strong trading and highly impressive regional asset and provides core investors with a well managed shopping centre investment opportunity, the calibre of which will generate strong market interest both domestic and offshore," said Mr Rooney.

For the year ended December 2010, the Tropical North Queensland region attracted close to 2 million international and domestic tourists, with an estimated visitor expenditure of over $2.2 billion (approx.). In addition to this tourism expenditure, the Centre benefits from resident Total Trade Area retail expenditure of approximately $2.7 billion (Source: Pitney Bowes Business Insight, July 2011).
The Centre services a densely and growing populated total trade area of 229,290 residents (approx.), forecast to increase at 1.5 per cent per annum (approx.) (Source: Pitney Bowes Business Insight, July 2011).