Skip Ribbon Commands
Skip to main content

News release

AUSTRALIA

DFO Cairns Outlet Shopping Centre comes to market

Strictly limited acquisition opportunities in the Australian outlet centre market, with only 18 centres throughout Australia and five recent transactions


DFO Cairns is being offered for sale via an on-market Expressions of Interest (EOI) campaign through JLL's Head of Retail Investments Australasia, Simon Rooney, and Director of Retail Investments Queensland Sam Hatcher.

Mr Rooney said, "The market for large, high quality and well located retail assets remains very strong. Investor interest is wide ranging including from domestic and offshore sources and institutional and high net worth investors.

"The upcoming sale of DFO Cairns follows the recent Spencer Outlet Centre transaction for $125 million in August. The strong interest and activity in the outlet centre market has resulted in a total of $878 million worth of transactions in the last two years.

"There was relatively limited investment activity in the outlet sector until 2013 when Lend Lease and the Future Fund sold Harbour Town Perth for $205 million to Far East Organization in October of that year. A series of outlet transactions also occurred in 2014 including Harbour Town Docklands in Melbourne, a 25% share in DFO South Wharf & Homemaker Hub in Melbourne, and Birkenhead Point in Sydney.

DFO Cairns is a well-established retail outlet centre comprising approximately 24,992sqm of Gross Lettable Area (GLA), including a Coles supermarket, World Gym, Trade Secret, Cotton On, 9 mini majors, 70 specialty tenancies, 5 ATMs and a Hungry Jacks pad site. It boasts an exceptional tenancy offer and income security, featuring a high quality array of leading national and international brands such as Dick Smith, Royal Doulton, Bed Bath 'n' Table and Lorna Jane.

"DFO Cairns is a strategic retail offering that has significant appeal to consumers due to the discount nature, and is a leading example of the retail outlet asset class. Due to the value nature of this sector, the assets perform well through recoveries but tend to outperform through downturns making them a highly resilient investment proposition" said Mr Hatcher.

The outlet centre sector in Australia has matured in the past 10 years to now comprise 18 outlet centres nationally (including hybrids) with total GLA of around 290,000 square metres.

The EOI campaign for DFO Cairns closes at 12 noon AEST on Thursday 29 October 2015.

 Recent Outlet Centre Transactions

PropertyDatePriceVendorBuyer
Harbour Town PerthOct-13$205 millionLend Lease/Future FundFar East Organization
Harbour Town DocklandsMar-14$150 millionING Real Estate Ashe Morgan
DFO South Wharf & Homemaker Hub (25%)May-14$87.6 millionPlenary Group CFX
Birkenhead Point Shopping CentreOct-14$310 millionAbacus / KirschMirvac
Spencer Outlet CentreAug-15$125 millionAustexx Spencer Street Pty Ltd (Receiver & Manager appointed) Jen Properties
    Source: JLL