Gladstone Central shopping centre has finally sold for just over $20m
The Gladstone Central shopping centre in North Queensland has finally sold for just over $20 million after being on the market three times over the past 10 years.
The seller was Goldman Sachs, which owned the asset as part of the Bank of Queensland distressed property debt portfolio it bought following the financial crisis around 2012. The shopping centre fell into the hands of receivers and managers for the first time in 2010 but a sale then was not successful.
Goldman’s attempted a second sale in 2016 and last week, it closed the deal at an initial yield of 11.6 per cent through its agent and mortgagee in possession, Restructuring Solutions’ Chris MacDonnell. CBRE’s Peter Rossi and Darren Collins brokered the deal.
The sale included two properties, the Spotlight Centre and the Night Owl convenience centre. Two other properties which were also once part of the centre, Dicey’s Irish Pub and a KFC outlet, sold separately a few years ago.
A local Queensland retail syndicator acquired the property, with plans for a more aggressive leasing program to take the centre to full occupation. It is currently 15 to 20 per cent vacant, it is understood.
The Gladstone economy has improved since the financial crisis and the mining downturn given the presence of new infrastructure projects including three liquefied natural gas projects on Curtis island, a new coal wharf on Wiggins Island and the Yarwun alumina refinery.
“Most buyers were impressed with the continued growth of the region, which is supported by multiple significant infrastructure projects,” Mr Rossi said.
“The centre’s design provides a highly convenient retail offering, which is supported by Large Format Retailers REPCO and Spotlight and the only cinema complex in the city,” Mr Collins said.
Mr Rossi also said the property, which has a replacement cost of more than double the purchase price, was good value to the new owner.
The 12,579-square-metre centre sits on a 1.9-hectare site, along the Dawson Highway. It has 366 car parks with drive-up convenience.
