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Melbourne-based Fawkner Property has acquired major shopping centre Stockland Cairns for $146 million, securing the asset manager’s second Queensland deal in three months.
The transaction was agreed at the asset’s book value, reflecting a 6.75 per cent yield and reinforcing Stockland’s (ASX: SGP) desire to reduce exposure to retail and retirement living in its portfolio.
Fawkner Property recently swooped in on another opportunity in September, which saw it acquire Mount Pleasant Centre in the north of the sunshine state for $162.5 million.
Located on Bruce Highway, the latest buy in Cairns is anchored by two major supermarkets and a further 111 tenants.
Fawkner Property general manager of funds management Stuart Fox says the transaction was a fantastic result for both parties given the company's strict focus on Essential Service assets and community-based town centres.
“In a market that has moved a lot in recent months, we are delighted to acquire such a prominent and high performing centre that is heavily weighted towards Essential Services tenants," Fox said.
The tenancy mix is dominated by national retailers which represent 89 per cent of the total centre gross lettable area and 83 per cent of income.
Stockland Cairns will join Fawkner Property’s Essential Service Trust No.17, which will be available to investors in the first half of the next calendar year.
The deal was negotiated off-market and is expected to settle in the third quarter of FY22.
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