Lendlease completes strategic sale of Cairns Central shopping centre
Lendlease, through its Australian Prime Property Fund Retail (APPF Retail), has successfully exchanged contracts for the sale of Cairns Central, the sole regional shopping centre in Far North Queensland, to Fawkner Property for approximately A$390 million.
Cairns Central: A Prime Retail Destination
Cairns Central, renowned for being the only regional shopping centre in Far North Queensland, is a prime spot benefiting from the area’s substantial tourist population. Spanning over 51,972 sqm, the centre features a diverse retail mix with over 186 quality tenants, making it a key lifestyle, entertainment, and fashion hub for both residents and tourists.
High Demand for Cairns Central
The sale of Cairns Central garnered significant interest from potential buyers, attributable to its strategic location in one of Australia’s largest regional cities, paired with strong growth forecasts. The centre’s high-quality retail mix contributed to its appeal as a sought-after investment opportunity.
Major Retail Transaction: Cairns Central Sold by Lendlease for A$390M
Expected Settlement and Sale Management
The settlement of this landmark sale is anticipated to take place in late February 2024. The sale process was expertly managed by Lachlan MacGillivray of Colliers International and Sam McVay of McVay Real Estate.
Strategic Moves for APPF Retail
Anne MacSporran, Fund Manager of APPF Retail at Lendlease, highlighted the significance of the sale, stating it provided a robust outcome for investors, especially considering the market conditions experienced throughout 2023. This strategic divestment will enable APPF Retail to fulfill outstanding redemption requests, offering liquidity to investors.
Positive Outlook for the Australian Retail Sector
MacSporran also emphasized the positive trajectory of the Australian retail sector. With sales rebounding post-pandemic and stabilizing at normalized levels, the sector is bolstered by strong retail fundamentals. The limited supply of retail space is expected to be a key driver for future growth.
Lendlease’s Future Strategy
Looking ahead, Lendlease’s APPF Retail is well-positioned to implement its Prime Urban Growth Centre strategy. This strategy focuses on owning and developing multi-purpose assets that dominate their trade areas, attracting a diverse range of shoppers and customers, thereby driving high-value visitation.