Sentinel sells home retail trio for $89m
Sentinel Property Group has offloaded a trio of homemaker centres across Australia in deals worth almost $90 million.
The investment group netted a tidy return for Dandenong Home Quarter centre in Victoria, Ipswich Homebase in Queensland Nowra House & Home in northern New South Wales, having acquired them over the past five years.
The Dandenong and Ipswich assets were picked up by national property fund manager Primewest, which paid a combined $68.75 million.
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At $36.25 million, Ipswich Homebase represented the highest price of the three, and sold with a $12.75 million price hike over what Sentinel paid for it in 2013.
The large format retail sector continues to perform, particularly in high-growth, well-established locations
It is positioned on a 2.68ha site with more than 350 car parks and 12,903sqm of lettable area, and has 10 tenancies including Fantastic Furniture, Spotlight, Forty Winks, Chemist Warehouse, T.K. Maxx and an IGA supermarket.
Dandenong Home Quarter traded for $32.5 million and has tenants including The Good Guys, Super Cheap Auto, Fantastic Furniture, Rebel Sport and Officeworks.
Sentinel Property Group has sold retail centre Dandenong Home Quarter. Picture: Sentinel.
Nowra House & Home, which has eight tenants including Spotlight, Pillow Talk and BCF, sold for $20.3 million – a $5 million on what Sentinel paid for it in July 2015.
Sentinel managing director Warren Ebert says there is no shortage of ongoing interest in Australia’s large format retail sector.
“These sales have been excellent results for our investors and the decision to sell is consistent with Sentinel’s strategy of buying at an opportune time and then selling based on our view of the market,” Ebert says.
“The large format retail sector continues to perform, particularly in high-growth, well-established locations such as Ipswich, Dandenong and Nowra. The fact that these centres maintain full occupancy underwrites the interest from high-profile retailers to have exposure in this style of asset, in these locations.”
