Sentinel checks out of Tuggeranong mall for $46m
Sentinel Property Group, led by Warren Ebert, has sold out of a Canberra homemaker hub for $46 million, booking in a 50 per cent gain on the price it paid eight years earlier, as the busy syndicator looks to bed its next major deal – a Mackay shopping centre.
Tuggeranong Homeworld at Greenway in Canberra’s south was Sentinel’s first acquisition in the nation’s capital when it was purchased in mid-2014 for $31 million. It has been snapped up by Garry Carter’s Metro Diversified Property Management on a yield of 7.55 per cent. The deal was brokered by JLL’s Sam Hatcher and Nick Willis.
A single-level, 12,228-square-metre convenience and large-format retail centre, Tuggeranong Homeworld has 25 specialty tenancies and six major occupiers including the federal government, Aldi, Dan Murphy’s, Petstock, Supercheap Auto and PJ O’Reilly’s Authentic Irish Pub. The mall generated a net distribution upon the sale of 11.25 per cent.
“While Tuggeranong Homeworld has been an excellent asset and we have been able to add value to the centre, such as an upgrade of the Aldi supermarket, we received a good offer for the property,” Mr Ebert said.
“The decision to sell is always based on Sentinel’s strategy of buying at an opportune time and then selling based on our view of the market.”
It has been a busy year so far for Sentinel, which completed its biggest property deal yet, with the $418 million purchase of Casuarina Square in Darwin from GPT Group.
The Brisbane-based syndicator is now in the middle of finalising its acquisition of Caneland Central Shopping Centre in Mackay from Lendlease’s APPF Retail fund.
Like Casuarina Square in Darwin, Caneland is a regional retail centre which dominates its surrounding market and comes with considerable development potential and value-add upside.
With 65,964 square metres of retail space area leased to about 202 tenants, the Mackay mall is the largest of its type in the region, servicing a catchment of almost 160,000 people.
Its anchor tenants include Myer, Big W, Coles, Target and Woolworths, and it is the only shopping centre with a Myer store within 400 kilometres.
