An Australian property group has added a $36.5 million shopping centre to its portfolio this week.
ASX listed company Stockland, which develops and manages retirement villages, residential communities and office and industrial assets, has purchased the Centro Townsville complex in Queensland.
The 13,650sqm sub-regional centre contains a Kmart, Coles, a major regional Commonwealth Bank and 25 specialty stores. Stockland already has the Stockland Townsville, which is being redeveloped and is opposite Centro.
The group's chief executive officer of commercial property, John Schroder, said Townsville is a key growth market and the Centro Townsville is a 'strong strategic and complementary fit' with the nearby development.
“The purchase represents good value for Stockland with an initial yield of 8.3 per cent and opportunities to create leasing, branding and operational synergies with our existing centre,” Schroder said.
When finished later this year, the redeveloped Stockland Townsville will have 46,000sqm space available to let and will feature the region's first Myer department store.
With the group's new acquisition, Stockland will be managing nearly 60,000sqm of retail space.