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News release

Sydney

Unlisted funds driving transaction activity in the sub-regional sector

Colonial’s CERF acquires Riverside Plaza from AMP Capital.


​AUSTRALIA, 06 June 2014 - Simon Rooney of JLL has exclusively negotiated the sale of Riverside Plaza in regional New South Wales, acting on behalf of AMP Capital.

Riverside Plaza is a dominant sub-regional shopping centre anchored by a strong-trading Coles supermarket, Target DDS, four mini major tenants; 43 high-quality specialty tenants and five kiosks. Presented over a total Gross Lettable Area (GLA) of 21,393 square metres, the centre is the only sub-regional shopping centre within the Queanbeyan Town Centre and is the largest shopping centre in the catchment by in excess of 10,000 (approx.) square metres. 

CFSGAM Property Enhanced Retail Fund (CERF) acquired the asset on an 8.00% yield.
 
Simon Rooney, JLL’s Head of Retail Investments Australia, said, “We continue to see very high levels of activity in the sub-regional sector. There was over $1.8 billion of sub-regional transactions in 2013 being a record for the Australian market and expect to see these strong volumes continue in 2014.”
 
Mr Rooney said, “There have been just four sub-regional sales so far in 2014 being Orange City Centre, Gippsland Centre, Sale, Port Village, Port Douglas and now Riverside Plaza, Queanbeyan totalling AUD 187.8 million, however JLL have close to AUD 400 million of sub-regional assets that will transact within the next 1 to 2 months, with further sub-regional assets being shortly brought to the market.”
 
“Unlisted funds have been one of the major drivers of sub-regional transaction activity on both the buy and sell side”, he noted.

“Yields for sub-regional centres remain attractive to an increasing range of investors and we are seeing stronger levels of demand from listed and unlisted buyers alike. This growing competition for sub-regional assets is driving yield compression at the quality end of the market,” said Mr Rooney.
 
JLL Research shows median yields for sub-regional centres nationally tightened by approximately 10 basis points in Q1/2014 to 7.57%, with a range between 6.50% and 10.00%.