In a landmark transaction, Haben Property has acquired the remaining 50% in Stockland Townsville, a major regional shopping centre anchored by Myer in Queensland.

Haben Property acquired the remaining 50% of Stockland Townsville for $123.5 million, a premium to the Jun-23 acquisition of Dexus’ 50% interest which was formally part of the AMP Capital Shopping Centre Fund.

Haben’s Managing Director, Ben Finger commented on the purchase, “Haben is pleased to now own and control a 100% interest in Stockland Townsville, allowing our business to have full control and implement our bespoke asset management strategies for the centre. We have been attracted to Townsville due to its robust and diverse economy underpinned by the federal government’s commitment to relocate a significant portion of the military to the region. This underpins the city’s bright and continued growing future.”

Stockland Townsville occupies a key strategic corner site with prime street frontages providing exposure to more than seven million passing vehicles per annum

Finger went on to discuss the strengthening performance of the retail sector: “Haben now manages in excess of $2 billion of shopping centres across Australia, providing us a real time read on the strength of the retail sector. Our portfolio has a vacancy of only 2%, foot traffic continues to grow, and moving annual turnover is up on last year. As our portfolio evolves and grows, we are seeing a continued opportunity for potential mixed uses to further underpin these town centre sites.”

Haben acquired their first 50% interest in the asset earlier this year, the manager picked up the remaining 50% share from Stockland which included the management rights to the Shopping Centre.

Throughout 2023, all capital markets globally have been substantially down on the prior year’s record volumes. Shopping Centre activity throughout Australia remains approximately 50% down YoY and on track to close the year out 45% down on the prior 5-year average. This lack of supply is driving heightened demand for capital that remains well capitalised to acquire.

Haben was advised by JLLs’ Nick Willis and Sam Hatcher on their most recent acquisition.

Nick Willis notes “Opportunities to acquire a controlling interest in ‘Regional’ Shopping Centres are rarely made available. This transaction represents one of only six ‘Regional’ Shopping Centres (with management) to trade in the last decade, and only four of these were formally offered to market, further highlighting the rarity and high barriers to entry in this asset class.”

Hatcher said: “The retail sector is experiencing strong demographic tailwinds off the back of record population growth – which can be controlled through migration flow – and a lack of retail floor space completions. The lack of new retail stock is more prevalent for larger discretionary-based assets, and as a result, we are seeing strong engagement from existing and maiden capital looking to seek stable and higher returns from this sub-sector.”

Willis said: “Acquisitions of larger shopping centres are being supported by record high retailer performance and sales growth. We are now seeing this translate into declining vacancy nationally among ‘Regional’ Shopping Centres which is leading to positive rental growth. Over the June 2023 reporting season, all retail-specific REITs in Australia reported positive rental growth averaging 3%.”