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Westlawn Property Trust has lifted its portfolio value to $400 million after buying two South East Queensland retail centres in Ormeau and Logan.
The flagship trust of Gold Coast-based Clarence Property has spent $45 million on the two centres, including Woolworths Ormeau Centre for $29 million and Logan Village Shopping Centre for $16 million.
Both centres are in the heart of fast-growing residential corridors close to the Pacific Motorway between Brisbane and the Gold Coast, and have Woolworths as their anchor tenant.
The 4,602sqm Ormeau property has six specialties including a medical and pharmacy tenant, with a 12.7-year weighted average lease expiry (WALE) and a six per cent yield.
The 3,174m2 Logan Village has four specialties and a 13.19-year WALE.
Clarence Property managing director Peter Fahey says the two retail centres were a great fit for Westlawn Property Trust and its conservative investment model.
The trust now has eight shopping hubs from Logan to Yamba, NSW.
"This annuity style core retail property is exactly what we were looking for to add to 19 other retail, commercial, industrial and development properties which make up the Trust," says Fahey.
"This workbook includes a Woolworths-anchored centre Westlawn is currently developing in the Clarence Property-owned Epiq community in Lennox Head, with plans to open for trade in July 2020."
He says neighbourhood retail centres also provide a social function for the community, without the risk associated with big box retail found in larger centres.
"Our recent purchases demonstrate our belief in the neighborhood centre retail model, which focuses on core retail, with the potential to add click and collect services as online shopping gathers momentum," he says.
"Moving in to 2020, Westlawn Property Trust is looking towards future acquisitions of retail, commercial and industrial assets in fast growing corridors."
CBRE's Joe Tynan and Michael Hedger brokered the deal through an expression of interest campaign that attracted 146 enquiries from a variety of investors.
"We had 12 bids from local and offshore private investors and syndicates," says Tynan.
"Out of all the neighbourhood retail centres that have been put to market in South East Queensland this year, these properties represent a very defensive income profile with low exposure to specialties and long WALEs."
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