Big Top Shopping Centre Sells For $85 million

Reed Property Group and the Kahlbetzer family are in final negotiations to sell the Big Top Shopping Centre in Maroochydore, Queensland, for about $85 million to global investment house LaSalle Investment Management, the Australian Financial Review reported.

The 4478 sq m centre, which is anchored by a Woolworths supermarket, has just been comprehensively redeveloped and now combines a farmers' market with retail stores.

The recently completed redevelopment includes a new dining and entertainment precinct and the farmers market called Big Top Market Fresh.

The Australian Financial Review reported that the price reflects an initial yield of about 7.1 per cent but a significantly higher yield if the asset is fully leased.

A Reed Property Group spokesman said there had been strong interest in the asset located at 20 Ocean Street in Maroochydore's city centre.

"At this stage, Reed Property Group is in exclusive and confidential discussions and hopes to provide further details in the coming weeks," the spokesman told the Australian Financial Review.

LaSalle, which manages $53.5 billion in property investment, has been very active in Australia this year. Earlier this month it acquired the $85 million Summerhill Shopping Centre in Melbourne's northern suburb of Reservoir and in May, the LaSalle Australia Club Investments Trust acquired the site of a planned Home Hub outlet in Marsden Park in Sydney's north-west for $66 million.