Queensland’s largest retail sale in 2024

The sale of Willows Shopping Centre, a major sub-regional shopping centre in Townsville represents the largest retail transaction of the year in the state of Queensland.

Willows Shopping Centre is one of the top performing shopping centres in Townsville and the only triple-supermarket anchored centre in Northern Queensland, comprising over 44,500 sqm and generating over $360 million in Moving Annual Turnover. The centre is anchored by major tenants Coles, Woolworths, Big W, alongside Townsville’s very first ALDI, and supported by other national operators including Rebel, TK Maxx, JB-Hi-Fi, Cotton On and 107 specialty shops.

The centre, owned by the Dexus Wholesale Property Fund and managed by Dexus recently underwent a significant refurbishment and expansion, including a brand new fresh food precinct.

The sale of Willows Shopping Centre was exclusively brokered on behalf of Dexus by Nick Willis and Sam Hatcher from JLL, and Jonathan Fox and Carl Molony from Stonebridge, following a formal Expressions of Interest campaign.

JLL’s Head of Retail Investments - Australia, Sam Hatcher said: “The sale comes as transaction volumes for Sub-Regional Centres track at almost $1.2 billion YTD in 2024, trailing some 55% below the 3-year average annual volume for the sub-sector. The reduction in transaction volumes is being attributed to the limited availability of investment supply as fundamentals of the retail asset class continues to improve.”

Nick Willis, Senior Director at JLL said: “We are dealing with a notable increase in capital demand for retail, with the majority of investors who are returning to the sector engaging in the Sub-Regional asset class given the available returns and the land rich nature of these centres. This was evidenced by the depth of capital that engaged on the opportunity.”

The centre was sold to active Melbourne based fund manager Fawkner Property Group who were advised by Simon Rooney of CBRE.

Jonathan Fox from Stonebridge said: “Willows is the only centre currently in Townsville to accommodate ALDI, which was a key point of difference. Investors were attracted to the robust nature of the Townsville economy and opportunity to control a 100% interest in a Dominant Sub-Regional asset like Willows.”

Carl Molony from Stonebridge commented: “We received strong interest from predominantly local managers who were attracted to the opportunity to secure a 100% interest control in a dominant sub-regional. In addition, we received interest from a high-net-worth investor demonstrating the depth of capital for these assets.”