Tuggeranong Homeworld at Greenway, which was Sentinel’s first property in the nation’s capital when it was purchased in July 2014, for $31 million, has been sold to a private investor for $46 million, almost 50% more than the syndicator paid for the asset eight years ago.
Located approximately 20km south of Canberra’s CBD, Tuggeranong Homeworld incorporates 25 specialty tenancies and six major tenancies. The single-level 12,228m2 neighbourhood centre with attached office has approximately 333 car parking spaces.
The deal was negotiated by Sam Hatcher and Nick Willis of JLL Retail Investments on a yield of 7.55%.
Sentinel CEO, Warren Ebert, said Tuggeranong Homeworld, which has major tenants including the Federal Government, ALDI, Dan Murphy’s, Petstock, Supercheap Autos and PJ O’Reilly’s Authentic Irish Pub, had been a tremendous asset which had helped deliver strong returns for investors, with a net distribution upon the sale of 11.25%.
“The Sentinel Tuggeranong Retail Trust has continually delivered for investors over the past eight years,” Ebert said.
“While Tuggeranong Homeworld has been an excellent asset and we have been able to add value to the centre such as an upgrade of the ALDI supermarket, we received a good offer for the property.
“The decision to sell is always based on Sentinel’s strategy of buying at an opportune time and then selling based on our view of the market.”
Sentinel earlier this year completed the biggest property deal in its history with the purchase of Casuarina Square in Darwin from The GPT Group for $418 million.
Casuarina Square, NT
“Casuarina Square receives more than eight million visitors a year and we are already working to add value to this significant complex,” Ebert said.
“There is approximately 54,000m2 of development potential on the site. For Darwin to grow, Casuarina Square must also grow as both a retail centre and an employment node.”
Sentinel is also in the process of acquiring Caneland Central Shopping Centre in Mackay, which like Casuarina Square is a regional retail centre that completely dominates its market and also has development and value add upside.
With 65,964m2 of area leased to about 202 tenants, Caneland Central is the largest of its type in the region, servicing a catchment of close to 160,000 people. Anchor tenants include Myer, Big W, Coles, Target and Woolworths. It is the only shopping centre with a Myer within about 400km.
JLL been exclusively appointed on behalf of Lendlease to sell APPF Retail’s 100% interest in Caneland Central
Sentinel’s remaining asset in Canberra is Scarborough House, a Federal Government occupied office tower in the Woden Town Centre which it purchased last year for $83 million.
Established in 2010, Brisbane-based Sentinel Property Group is an Australian property investment firm focused on commercial and industrial property trusts.
