Citimark rings up $45m sale

Industry superannuation property fund ISPT will outlay $44.575 million on two Southeast Queensland retail centres to be developed by private property group Citimark.ISPT is acquiring the assets on behalf of its ISPT Retail Property Trust (IRAPT).The acquisitions have been structured on a “fund through” basis with IRAPT to purchase the land and fund construction costs.IRAPT has targeted Ipswich and Greater Springfield, both in Brisbane’s rapidly growing south western corridor.The Springfield property is a 3200sqm supermarket leased to Woolworths on a 20-year lease, along with eight specialty retail outlets totalling 541sqm.McNab Constructions has been appointed to build the centre with construction scheduled for completion in May 2017.The Ipswich centre is located at Silkstone and comprises a 4,889sqm neighbourhood centre located just 2km from the Ipswich CBD.Coles has committed to a 15-year lease on the 4200sqm supermarket within the centre, which is due to open in June 2017.Hutchinson Builders has been appointed to construct the centre.The centre adjoins an affordable 140 lot residential community, ‘Silkstone Residences’, also being developed by Brisbane-based Citimark on the14ha former TAFE site purchased from the Ipswich City Council.Citimark’s Director of Commercial and Retail, Jonathan King said the deal was the company’s first transaction with ISPT.“As Australia’s largest industry superannuation property fund, ISPT is well versed in identifying good value investments,” he said.“IRAPT’s decision to acquire both the Silkstone and Springfield retail centres is a huge show of confidence in these projects and the South-West corridor.”IRAPT Fund Manager Cameron Gregson said both locations were growing areas supported by strong residential catchments.“Obviously the quality of the anchor tenants in both centres also was a drawcard for IRAPT,” he said.“We look forward to working with Citimark as these projects are delivered over the next year.”Sam Hatcher from JLL and Craig O’Donnell from CBRE managed the sale.The Silkstone and Springfield projects are part of Citimark’s $1.5b diversified development book which is currently focused on South East Queensland.Past projects include the $120 million Evolution CBD riverfront residential tower; multi-award winning $95 million 42 level Felix Tower; $155m Central Brunswick riverfront urban renewal in Fortitude Valley; 330 lot Emmadale Gardens residential community in Gladstone; $85m Sub-Regional shopping centre in Melbourne and the 149 lot residential community Parkway Green near Springfield.