Charter Hall Retail REIT fund buys Salamander mall

The acquisition of the 24,000-square metre-mall in the Port Stephens region, flagged earlier this month, was struck on a 6 per cent capitalisation rate.

“This acquisition reflects our focus on our stated strategy to reduce exposure to smaller retail assets in order to acquire larger, higher-growth assets,” said fund manager Scott Dundas.

“The investment into the Salamander Bay Centre aligns with the REIT’s investment strategy and follows our recent acquisition of Arana Hills Plaza in the fast growing metropolitan Brisbane suburb of Arana Hills.

“Strategic asset locations, convenience based, dominance within the trade area, and a diverse mix of strongly performing anchor tenants are recurring themes across our resilient non-discretionary retail portfolio.”

First opened in 1986, the centre is anchored by Coles, Woolworths, Kmart, Aldi, and Target Country and has more than 55 specialty stores.

In December last year the listed Charter Hall retail trust bought the Arana Hills Plaza in Brisbane and an adjoining Shell petrol station from super fund investor ISPT for $67.1 million.

The acquisition of the Brisbane property was struck on a cap rate of 6 per cent and came as the retail property fund divested three other properties in Queensland and Victoria.

Caboolture Square, Moe Kmart and Pakington Strand were sold for $72.2 million in total and at a 10.4 per cent premium to their book value.

The Salamander Bay mall had been held in the Vicinity Retail Partnership, a wholesale fund previously operated by Novion, a forerunner to Vicinity Centres. It offered the centre for sale in February this year.

Vicinity did not have an equity stake in the wholesale fund. It appointed Colliers International’s Lachlan MacGillivray​ to handle the sale of Salamander Bay.

Last year investors in the same unlisted fund run by Vicinity opted to off-load a half stake in the Runaway Bay shopping centre in Queensland.