QIC sells Robina and Melbourne home maker centres
Local investment powerhouse QIC has sold two major retail centres for a combined $163m in recent days amid a hot market for home improvement centres.
Queensland state-backed fund manager QIC sold the Robina Home + Life Centre on the Gold Coast to a new Primewest fund for $66m.
It follows QIC global real estate selling Watergardens Homeplace in Taylors Lakes, in Melbourne’s northwest, to Harvey Norman for $97m.
Harvey Norman, chaired by billionaire Gerry Harvey, acquired the large-format Victorian mall on a low yield of 4.75 per cent, following very strong competition as investors hone in on the large-format retail sector that has proved resilient during the pandemic.
The Robina Home + Life centre is anchored by Nick Scali and The Good Guys outlets with other traders including The Reject Shop, Super Cheap Auto and Petstock.
The building, which was developed by QIC in 2017, is one of the most prominent large format retail centres (LFR) on the Gold Coast and includes parking for 315 cars.
Primewest, which has close to $5bn under management, owns more than 18 LFR centres with another one under development. Established in 1995, it also invests in industrial, residential and agricultural properties.
Primewest executive chairman John Bond said the company saw clear opportunities for the Robina centre given its proximity to the Gold Coast growth corridor and rising demand for home improvement and household items.
“Robina Home + Life is at the epicentre of the rapidly expanding Robina community that will benefit from more than $17bn worth of planned investment in the immediate Gold Coast vicinity,” said Mr Bond.
Robina, Home + Life Centre Robina. Picture: Scott Powick
“The large format retail sector was particularly appealing as it has shown significant growth during COVID-19 and continues to benefit from the strong national residential market.”
QIC sold the centre in a process jointly managed by Peter Tyson, Jon Tyson and Steve Lerche of Savills Australia with Jacob Swan, Sam Hatcher and Nick Willis of JLL.
Savills’ Peter Tyson said the sale had attracted offers from 16 investor groups attracted by quality income streams, the low cost of debt and growth in the home improvement sector.
“A significant driver has been the Reserve Bank’s move to cut interest rates three times to the lowest level in Australian history,” said Mr Tyson.
“The combination of social distancing and wider travel restrictions coupled with the lost cost of debt has driven an uplift in household spending in the home improvements sector.”
