Charter Hall acquires Campbelltown Mall for $197 million
The Charter Hall Group has teamed up with leading super fund MTAA Super to acquire Campbelltown Mall for $197 million, in the largest individual sub-regional shopping centre transaction in 2016.
Charter Hall bought the mall from Perron Group, with JLL’s Simon Rooney negotiating the deal. The transaction reflects a market capitalisation rate of 6%, said a media release.
Campbelltown Mall is located in one of Sydney’s largest south western suburban business districts and comprises an established, performing convenience-based shopping centre.
The mall comprises Coles, Woolworths, Kmart, Target and Aldi together with 10 mini majors and 84 specialty tenancies, with a 98% occupancy and 4.7 year weighted average lease expiry. It’s gross lettable area is more than 42,200 sqm and sits on a 7.2 hectare site.
Rooney, JLL’s head of Retail Investments – Australasia, said, “We continue to see a depth of institutional investor interest in strong performing sub-regional shopping centres, especially for assets in growth corridors, with opportunities for value add.”
Charter Hall has set up a fund called Charter Hall Prime Retail Fund (CPRF) to manage the asset along with MTAA. Charter Hall said it will co-invest $46 million for the acquisition.
Charter Hall’s retail head Greg Chubb said,” The property is the seed asset for CPRF, which will focus on acquiring and actively managing larger convenience-based retail centres with strong growth potential.”
The deal is due to close in October 2016.
Rooney added that Campbelltown Mall was the largest individual sub-regional shopping centre sold this year following divestments by Vicinity Centres.
The largest sub-regional transactions for 2016 to date, include Vicinity Centres sales of:
• Four sub-regional centres to Blackstone and Mirvac (AUD 841.4 million) in June
• A 50 percent interest in Runaway Bay to Perron Group (AUD 160 million) in June; and
• A 50 percent interest in Tuggeranong Hyperdome to TTCT Investments (AUD 120 million) in September.
“The sub-regional sector has continued its record level of activity, with $1.7 billion in transactions in 2016 year-to-date, building on the $2.8 billion in 2015 – which was a record high for the Australian market,” said Rooney.
