(Sydney, Australia) EG, one of Australia’s leading real estate fund managers, is preparing to sell the Brisbane’s North West Plaza after the execution of the asset’s capital works program and in line with the positive market outlook.
The single-level Brisbane shopping centre was acquired in September 2014 offering a high-quality neighbourhood shopping centre, 8.5km north of the Brisbane CBD. As a part of the reposition EG undertook $2.4 million in upgrade works including a new entrance, paving and external driveway works, centre roofing and plant and machinery upgrades.
“The works carried out by EG have greatly improved the access and egress for upper deck carparks and we have received a large amount of positive feedback from shoppers” Divisional Director, Daniel Farley said.
Post-acquisition, EG’s leasing strategy was also able to achieve positive rental reversion through resetting of the tenancy mix. In addition, selection of new tenants for the centre has centred around a family and serviced based offering, furthering bolstering the non-discretionary nature of the asset.
“We believe that the property should be divested post completion of the strategy to take full advantage of the cap rate compression witnessed since the acquisition” says Farley. “The scarcity of competing product currently on market is also compelling” he continues.
EG has appointed CBRE’s Peter Rossi & Michael Hedger and JLL’s Jacob Swan and Sam Hatcher to manage the sale.
“We are continuing to see new lines of capital pursuing well-established metropolitan neighbourhood centres and see North West Plaza being well received with its diversity of income and strong trade area” Mr Rossi said.
“In addition to the strength of the Woolworths Supermarket anchor tenant covenant (initial expiry May 2032), North West Plaza has continued its evolution at the heart of Everton Park, providing the full range of essential services for the community” said Mr Swan.
The Core Plus Fund No 1 successor fund is now open for investment.
EG, one of Australia’s leading real estate fund managers, has appointed McVay Real Estate and JLL to market the Gold Coast’s iconic Circle on Cavill shopping centre. The sale comes after the completion of an extensive capital works’ and leasing program which has focused the property on customer experience and entertainment.
Circle on Cavill, located in the heart of one of Australia’s busiest tourist destinations, Surfers Paradise, features over 12,364 sqm of GLA across both entertainment, dining and convenience-based retail with high-quality office accommodation.
The landmark mixed-use development has undergone over $13 million in extensive upgrades and tenant fitout works since EG acquired the site in 2011. This includes the installation of a vibrant community space including a children’s playground, landscaping, car park automation and a giant TV screen. In addition, the wholesale conversion of the open space provides an integrated offering for a premium food and entertainment-based precinct. It’s focus on dining, entertainment, health and convenience drive customer trade throughout both the day and night.
Anchored by Woolworths under a long-term lease, the property has been transformed into one of the Gold Coast’s pre-eminent CBD retail destinations.
“The physical works have greatly transformed the shopping experience to a day and night destination with diverse food and entertainment options. We’ve received positive feedback from customers and increased visitations post the upgrade” Divisional Director, Daniel Farley said.
In addition to Woolworths, the asset now boasts national retailers including Hurricanes Grill, Poke California, San Churro Chocolateria, Holey Moley mini-golf and Strike bowling.
The completion of the G: Link light rail system and Cavill Avenue Station serves the heart of Circle on Cavill. Several bus routes and more than 500 underground parking spots are easily accessible along the neighbouring Gold Coast Highway making the precinct highly accessible.
Since 2009, the Gold Coast has led the Queensland tourism market with continued growth in Chinese visitors. Sam McVay of McVay Real Estate says “The Gold Coast market continues to go from strength to strength, with the success of the 2018 Gold Coast Commonwealth Games providing the region with even greater global visibility. The growth in offshore demand for the Surfers Paradise CBD market continues unabated”.
Jacob Swan of JLL adds, “Following its repositioning, Circle on Cavill has been transformed into one of the Gold Coast’s best mixed-use developments. Its focus on dining and convenience retailing is a perfect tenancy mix for the Surfers Paradise market.”