Sentinel sells Canberra shopping centre


October 10, 2022

SENTINEL has sold Tuggeranong Homeworld for $46 million, closing a single asset fund after eight years.

On a 2.2 hectare island site at Greenway, opposite Leda Holdings’ South Point shopping centre, once known as the Hyperdome, the deal to Garry Allan Carter’s Metro Diversified Property Management reflects a 7.55 per cent net passing yield.

It also demonstrates a noteworthy capital gain on the $31m it outlaid.

“While Tuggeranong Homeworld has been an excellent asset and we have been able to add value to the centre…we received a good offer,” Sentinel chief executive officer, Warren Ebert, said.

“The decision to sell is always based on Sentinel’s strategy of buying at an opportune time and then selling based on our view of the market,” he added.

With the deal, fund investors earned $1.30 per dollar.

Earlier this month, the Brisbane based fund manager snapped up its 10th Townsville asset – an industrial development site at Stuart.

Last October, it paid GPT $418m for Darwin’s 11.79ha Casuarina Square shopping centre (which unusually includes a major student accommodation complex), abutting a 1.9ha business park Sentinel acquired in 2016.

The group is also purchasing Mackay’s Caneland Shopping Centre, for c$350m, from Lendlease’s Australian Prime Property Fund Retail.

Last year Sentinel, for its Regional Office Trust, bought a Phillip, Canberra, office, Scarborough House, from Centuria – outlaying $83m.

JLL’s Sam Hatcher and Nick Willis marketed Tuggeranong Homeworld.

The suburb is 20 kilometres south of Canberra.

Tuggeranong Homeworld was Sentinel’s first ACT asset.

At 150-180 Soward Way, it would offer developers upside; structures up to nine levels could be considered, the agents said.

It presently contains 333 car parks and a 12,228 square metre building – leased to six major groups, and 25 specialties.

Nearly 90pc of the (c$3.77m) annual income comes from national businesses, amongst them, Cash Converters, Dan Murphy’s, PETstock and Supercheap Auto. There is even a PJ O’Reilly Irish pub.

Aldi is one of the anchors; Sentinel recently refurbished its tenancy.

Marc Pallisco | Real Estate Source

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