Sugarland purchase sweet for Stockland
Property owner, Stockland, is continuing to grow its retail property portfolio, buying AMP Capital’s 50 per cent stake in Sugarland Shoppingtown for $59.25 million, a capitalisation rate of 7.5 per cent.
The deal, which settled on Friday, 10 October 2014, included management, leasing and development rights for the shopping complex.
Stockland has also exchanged put and call contracts with a client of AMP Capital to purchase its 50 per cent holding in Sugarland “on materially similar terms”.
“The binding put and call contracts may be exercised between six and 24 months after the initial 50 per cent acquisition,” a statement from Stockland said.
The purchase is part of the property company’s plans to expand its retail offering, Stockland managing director and chief executive, Mark Steinert said in a statement to the Australian Securities Exchange (ASX).
“Our national retail portfolio, which will soon comprise 41 shopping centres, is a significant growth engine for our business,” he said.
“This quality acquisition complements our $1.2 billion redevelopment pipeline, providing a strong yield and future growth potential.”
Stockland group executive and chief executive Commercial Property, John Schroder, said Sugarland filled a gap in the company’s “Queensland retail footprint”.
“While investing in, and successfully redeveloping Stockland Hervey Bay, we learnt a lot about Bundaberg and identified it as a trade area where we want to be active,” he said
“Sugarland is a very productive, 22,795 square metre sub-regional shopping centre that fits well within our existing portfolio of predominantly regional centres, and we’re confident we can create more value for shareholders and customers by improving the asset over time. “A high proportion (83 per cent) of tenants at Sugarland are national retailers with whom we already have strong relationships, and we look forward to working in collaboration with them to grow the productivity and profitability of the centre.”
Sugarland is anchored by Woolworths, Big W and JB HiFi, with four additional mini-majors and 64 speciality stores.
AUTHOR
Nicholas O'Donoghue
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