Property fund manager Clarence Property is continuing its push into the South East Queensland market, this week acquiring The Zone Shopping Centre at Underwood for $31.25 million.
The Zone is Clarence Property’s latest Queensland retail purchase for its flagship unlisted Westlawn Property Trust (WPT), which is currently open for investment with a forecast 8.6 per cent distribution including franking credits (for the year ending June 30, 2018).
The shopping centre is tenanted by national retailers including OfficeWorks, Rebel Sport, Good Price Pharmacy and Best Friends Pet Warehouse.
Clarence Property managing director Peter Fahey says The Zone is the fourth South East Queensland-based acquisition for WPT inside six months, with other commercial and retail assets purchased in Hamilton, Spring Hill and Northgate for a total of $34.74 million since October 2017.
Mr Fahey says Underwood is a good fit for WPT, which has more than $250 million in assets between Yamba and the Sunshine Coast.
“Our target asset allocation for WPT is about 30 to 45 per cent retail, with a focus on high yield neighbourhood shopping centres in growth regions,” he said.
“We started in Grafton more than 24 years ago, and while we still have a strong presence in northern New South Wales, we are making a push into South East Queensland, with about 55 per cent of the Trust’s portfolio now located across the region.
“Underwood was particularly attractive as it is positioned at the corner of a high traffic intersection, next to Queensland’s largest new Bunnings store, which is due for completion in September.”