QIC sells half-stake in Westfield Helensvale to IP Generation for $185m

Queensland Government-owned QIC Property Fund has confirmed it has officially sold its 50 per cent stake in Westfield Helensvale to Melbourne-based IP Generation Holdings for $185 million in a deal first announced in January 2022.

The Gold Coast shopping mall, located 45 minutes south of the Brisbane CBD and 20 minutes north of Surfers Paradise, is held in a joint venture with Westfield operator Scentre Group (ASX: SCG) after being on the market since mid-2021.

Located in the town centre of Helensvale, the shopping centre consists of 43,000sqm of space incorporating Woolworths, Coles and Aldi supermarkets, as well as discount department stores Target and Kmart.

“At $185 million, the sale of 50 per cent of this asset was in line with QIC’s book value - a very pleasing result for our investors and QIC,” managing director of QIC Real Estate, Michael O’Brien, said.

“Not only does this divestment further showcase our ability to deliver successful transactions on behalf of investors, but also demonstrates that investors' confidence is returning to the broader retail sector.

“In alignment with our long-held fund strategies, we continue to execute on market opportunities which drive strong performance for our clients.”

Situated next door to the Brisbane Heavy Rail and Gold Coast Light Rail, the site can also be accessed by the M1 Pacific Motorway and Gold Coast Highway and provides car parking for roughly 2,000 vehicles. The commercial asset includes three mini-major tenancies, 136 speciality tenancies, and six mezzanine office tenancies.

Founded by Chris Lock, IP Generation currently manages more than $600 million of assets across a mix of office, development and retail properties. Not unfamiliar with the state, IP Generation purchased Surf Coast Social, the historic Quicksilver headquarters in Torquay, in 2019.

“The opportunity to acquire one of south-east Queensland’s premier convenience-based sub-regional centres and the ability to partner with the asset’s joint owner, Scentre Group, were key buyer drawcards,” said CBRE’s head of retail capital markets Simon Rooney, who negotiated the sale on behalf of QIC.

“Joint venture opportunities with major institutional owners and managers are now being actively pursued by investors, particularly those offering future development upside.”

The deal represents a yield of around 6.25 per cent and is made up of $167.5 million for the shopping centre and $17.5 million for an additional 9.6 hectares of surplus land.

The Gold Coast, Australia’s sixth-largest city, has attracted significant retail investment over the recent period, including the sale of Benowa Gardens for $60.5million and stakes being sold in Pacific Fair, Runaway Bay Village, Harbour Town, Grand Plaza shopping and Metro Market Centre.