Goldman Sachs to offload Gladstone retail hubs

Global investment banker Goldman Sachs has put two well-established shopping centres in Gladstone’s traditionally tightly held retail scene on the market.

Gladstone Central, which encompasses The NightOwl Centre and neighbouring Spotlight Centre, are being offered for sale individually or in-one-line via a formal expressions of interest campaign which closes on March 17. ​

Goldman Sachs bought the two properties from the Bank of Queensland in July 2012, as part of a distressed property debt portfolio it acquired after the centres’ builder and then-owner Richard Mulhern found financial trouble in 2010.

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JLL directors of Queensland retail investments, Jacob Swan and Sam Hatcher, have now been appointed to market the properties under instructions from Chris MacDonnell, of Restructuring Solutions, as agent for the Goldman Sachs fund.

The Spotlight Centre, located at 65-69 Dawson Rd, encompasses 8613sqm of retail space with two major anchors, Spotlight and Gladstone Cinemas, supported by two mini-majors and 24 specialty tenancies, including Suncorp Bank, Bank of QLD, Anytime Fitness and Medibank Private.

Goldman Sachs bought Gladstone’s Spotlight Centre in 2012.

The NightOwl Centre, located at the cnr Park St and Dawson Rd, is a convenience and food and beverage based centre encompassing 3965sqm of retail floor area across one mini-major, 20 specialties and one ATM.

Tenants include Dominos, The Cheesecake Shop, The Coffee Club, NightOwl, Subway and Gloria Jeans.

JLL says the properties have fully leased net incomes as at March 31, 2016, of about $2.063 million and $1.312 million per annum for the Spotlight Centre and The NightOwl Centre respectively.

The opportunity to acquire two well established centres that are part of the local retail fabric will be of appeal to the market

“Gladstone Central is considered to be the premier entertainment precinct in Gladstone with a high performing cinema and national food and beverage operators,” Swan says.

“The centre provides a diverse tenancy profile with major banking, medical and fitness occupiers complementing the entertainment uses.”

The listings come after the Queensland retail investment market recorded a record year in 2015, with new benchmarks were set for both yields and consistent pricing.

The Spotlight Centre features 8613sqm of retail space, including Spotlight and Gladstone Cinemas.

“Regional Queensland’s strong underlying property fundamentals and diverse economic base has contributed to investors taking a long-term approach, which has been reflected in continued high-levels of investment from domestic and international investors,” Swan says.

Hatcher adds that the Gladstone market has traditionally been tightly held and “the opportunity to acquire two well established centres that are part of the local retail fabric will be of appeal to the market”.

Gladstone Central is considered to be the premier entertainment precinct in Gladstone with a high performing cinema and national food and beverage operators

The shopping centres serve a significant area with the total trade area population estimated at about  55,500 in 2015, including 35,090 and 9690 residents in the main trade area and primary trade area, respectively.

The total trade area population is projected to reach more than 75,000 by 2026, including more than 44,000 residents in the main trade area, reflecting an average annual growth of 2.8%.