The $212 million sale of Willows Shopping Centre, a major sub-regional shopping centre in Townsville, represents the largest retail transaction of the year in Queensland. The sale was exclusively brokered on behalf of Dexus by Nick Willis and Sam Hatcher from JLL, and Jonathan Fox and Carl Molony from Stonebridge, following a formal Expressions of Interest campaign.
Willows Shopping Centre is one of the top-performing shopping centres in Townsville and the only triple-supermarket anchored centre in Northern Queensland, comprising over 44,500m2 and generating more than $360 million in Moving Annual Turnover (MAT). The centre is anchored by major tenants Coles, Woolworths, Big W, alongside Townsville’s very first ALDI, and supported by other national operators including Rebel, TK Maxx, JB-Hi-Fi, Cotton On and 107 specialty shops.
The centre, owned by the Dexus Wholesale Property Fund and managed by Dexus, recently underwent a significant refurbishment and expansion, including a brand-new fresh food precinct.
JLL’s Head of Retail Investments, Sam Hatcher said: “The sale comes as transaction volumes for sub-regional centres track at almost $1.2 billion YTD in 2024, trailing some 55% below the three-year average annual volume for the sub-sector. The reduction in transaction volumes is being attributed to the limited availability of investment supply as fundamentals of the retail asset class continues to improve.
Nick Willis, Senior Director at JLL said: “We are dealing with a notable increase in capital demand for retail, with the majority of investors who are returning to the sector engaging in the sub-regional asset class given the available returns and the land rich nature of these centres. This was evidenced by the depth of capital that engaged on the opportunity.”
Townsville is the largest city in northern Australia and is key region in driving economic development, underpinned by a large industrial sector, national defence hub, large port destination and a rapidly growing tourism sector. The city is set to benefit from an expansive current trade area of 233,839 residents, which is forecast to grow by 1.2% through to 2041.
Jonathan Fox from Stonebridge said: “Willows is the only centre currently in Townsville to accommodate ALDI, which was a key point of difference. Investors were attracted to the robust nature of the Townsville economy and opportunity to control a 100% interest in a dominant sub-regional asset like Willows.”
Carl Molony from Stonebridge said: “We received strong interest from predominantly local managers who were attracted to the opportunity to secure a 100% interest control in a dominant sub-regional. In addition, we received interest from a high-net-worth investor demonstrating the depth of capital for these assets.”
Willows Shopping Centre sold for $212 million by JLL and Stonebridge
The centre was sold to active Melbourne-based fund manager Fawkner Property Group who were advised by Simon Rooney of CBRE.
The Townsville transaction boosts Fawkner’s total funds under management to over $3 billion, with additional retail assets in the pipeline. It follows a national retail buying spree, which has included Queensland acquisitions in Gladstone, Mackay and Cairns.
Fawkner Property founder Chris Garnaut noted, “This is a strategic acquisition, which extends our foothold in central and Far North Queensland and will allow us to capitalise on the synergies of owning a high-quality retail portfolio in a fast-growing market.”
Fawkner has been one of Australia’s most active acquirers of regional and sub-regional shopping centres in recent years.
Since 2021, Fawkner has purchased 11 retail assets totalling $2.1 billion, including Western Australia’s Midland Gate, Karratha City and The Square Mirrabooka; Stockland Traralgon in Victoria; Queensland’s Cairns Central, Mount Pleasant Centre, Stockland Cairns, and Stockland Gladstone; as well as New South Wales centres Settlement City in Port Macquarie and Stockland Nowra.
