A new retail partnership between Consolidated Properties Group and CVS Lane Capital Partners has launched a fund that will target an additional 12 shopping centres around Australia to develop and hold through the property cycle. The centres nationally will be anchored by Coles, Woolworths, Aldi and IGA.
CPG Executive Chairman Don O’Rorke said CPG had engaged former CBRE National Director of Retail Investments Craig O’Donnell as an Executive Director to jointly spearhead the retail strategy. Mr O’Donnell will join CPG Managing Director of the Retail and Commercial Divisions, Kieran Cox who together have transacted in excess of $6 billion in asset value.
Mr O’Rorke said Mr O’Donnell’s appointment aligned with the Retail Partnership’s strategy to source retail assets with development or value-add potential and to fast track the growth of the portfolio.
The seed assets will include Casuarina Village – a new neighbourhood centre comprising a full-line Coles supermarket together with 12 specialty and parking for 237 vehicles.
The Retail Partnership also acquired the strong performing Woolworths-anchored centre at Karalee, near Ipswich in July 2015 for $18 million. The centre boasts 16 specialty shops including food, medical and service-based tenants and the Partnership has now received an approval from Ipswich City Council to expand the centre to include a 3,750sqm Coles supermarket and 12 specialty shops. Construction is due to commence in the fourth quarter of 2016.
The Retail Partnership will also develop the retail component of the broader $850 million Yeerongpilly Green urban village development in Brisbane which will be anchored by a major supermarket.
Mr O’Donnell said “We are looking to deliver a series of market leading, high quality retail environments nationally. The centres will be held in the portfolio post completion and actively managed through their initial trading period until a secure and stabilised income stream is established.”
CVS Lane Capital Partners Managing Director, Mr Lee Centra, said, “CVS Lane is delighted at Craig’s decision to join our Retail Partnership with CPG. We believe Craig will provide enormous impetus to our strategy to grow our initial portfolio of three assets to the target portfolio of 12.”
“Supermarket anchored, neighbourhood shopping centres are a defensive source of yield and combined with the upside from development and value-add through our partnership with CPG, we believe this represents a very attractive asset class for our investors.”