Woolworths-Anchored Center Fetches $19M

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BRISBANE, AUS-A Woolworths anchored shopping center under construction in the Queensland Sunshine Coast growth corridor has been pre-sold for $18.9 million. The seller is a joint venture of two locally based companies, publicly traded property company Trinity Consolidated Group and privately held developer Consolidated Properties. Consolidated Properties’ project partner Kieran Cox secured the 4-acre site for the shopping center in March for $5.3 million. Cox then locked in a 20-year lease with Woolworths. The buyer is Sydney-based Domaine Property Fund. Cox says the sale price represents a yield of 7.5% based on projected income.The center, which is under construction at Mountain Creek, mid-way between Buderim and Mooloolaba, will comprise the 23,680-sf Woolworths Supermarket, a Petrol-Plus service station and 14,000-sf of specialty retail in 10 storefronts. Project completion is expected prior to July 2006. Located on Karawatha Drive, the shopping center site adjoins the property upon which Mountain Creek Tavern will be constructed. “We have had strong interest for the space and we are at advanced stages of negotiation with national operators for a bakery, bottle shop, news agency, deli and a café,” says Cox. “I would expect to be finalizing deals over the next two to three weeks and have the center 100 percent leased prior to completion.”Cox says Trinity has access to the Consolidated Properties project pipeline and can choose to participate or pass depending on the deal and its potential. “The major benefit to our shareholders is that Trinity is isolated from any development risk, but gets to share in the upside,” he says.Since its listing in December, Trinity Consolidated Group has partnered with Consolidated Properties in the purchase of the Nerang Fair Shopping Center on the Gold Coast for $8 million; the $7.65 million purchase of Jindalee Central, which is being refurbished and on-sold; and is currently in negotiations involving several other substantial deals.Additionally, Trinity Consolidated Group undertook projects with Consolidated for the development of retail centers at Indooroopilly, Ferny Grove and Colmslie that were on-sold to FKP as forecast in its prospectus. The centers at Indooroopilly and Ferny Grove are complete and settled whilst Colmslie is under construction.