I read a lot about the property sector in the paper, it’s all in regards to residential property, perhaps due to advertising spend by this sector.
Property trusts however is where the long term growth will come over the next 5 years. The property trust sector paid the price for being over geared during the 2003-2007 Bull market and has been sold down heavily, I think this is overdone and for the long term investor take a look at Stockland.
Stockland has purchased the Centro Hervey Bay shopping centre in Queensland from the Centro Australia Wholesale Fund and Leda Holdings. The transaction, with an initial yield on the existing centre of 7.5 per cent, includes a 5.5 hectare land parcel surrounding the centre with existing development approval to more than double the size of the centre to over 35,000m2.
The 12 hectare site is located in the heart of the Hervey Bay township and currently includes a recently upgraded full-line Target, Super IGA and 40 specialty stores. The approved redevelopment will see the centre become the leading sub-regional shopping centre in the fast-growing Fraser Coast region, including a new Kmart, Coles supermarket, food court and many more specialty shops and services.
For these large property trusts it is business as usual, they are well funded and have plenty of opportunity to pick up quality properties at discounts.
If you are looking for exposure to property this is where I will be putting my money.
For more information on Stockland please contact us on 07 4771 4577.