Stockland and AMP Capital in retail centre deals

Stockland and AMP Capital in retail centre dealsStockland has been active in the Queensland retail property market, completing a sale in Townsville and an acquisition in Bundaberg, with both deals involving funds managed by AMP Capital.In Townsville, Stockland has continued its capital partnering program with the sale of a per cent stake in Stockland Townsville Shopping Centre to AMP Capital Shopping Centre Fund for $228.7 million.The 58,681 sqm centre, which was redeveloped in 2013, includes the region’s only full-line Myer story, Big W, Woolworths, four mini-majors, 180 specialty stores and a casual dining terrace. To the east of the existing centre is additional development land with first-stage approval for an entertainment and lifestyle precinct.Stockland Townsville has a capitalisation rate of 6.25 per cent, while the separate Coles and Kmart component of the investment has a capitalisation rate of 7.25 per cent.”We will retain management, leasing and development control of this highly productive asset while rebalancing our investment exposure in Townsville in favour of other high-returning growth projects across Australia,” said John Schroder, group executive and CEO of commercial property at Stockland.In the second retail deal in the region, Stockland has purchased a per cent interest in Sugarland Shoppingtown in Bundaberg from an AMP Capital-managed fund for $59.25 million. The acquisition includes management, leasing and development rights.Sugarland, with an area of 22,795 sqm, is anchored by Woolworths, Big W and JB Hi-Fi and includes four mini-majors and 64 specialty stores. It has been acquired at a capitalisation rate of 7.5 per cent.”Our national retail portfolio, which will soon comprise 41 shopping centres, is a significant growth engine for our business,” said Mark Steinert, managing director and CEO of Stockland. “This acquisition complements our $1.2-billion redevelopment pipeline, providing a strong yield and future growth potential.”