Fawkner Property, a Melbourne-based fund manager, has recently made a significant move in the Queensland commercial property market by acquiring the Willows Shopping Centre in Townsville for a staggering $212 million. This acquisition marks a strategic expansion of Fawkner Property’s retail portfolio in Queensland.

The transaction, facilitated by CBRE’s Simon Rooney on behalf of Fawkner Property, involved the purchase of the shopping center from Dexus. The Willows Shopping Centre, previously owned by the Dexus Wholesale Property Fund, underwent substantial renovations and enhancements, including the introduction of a new fresh food precinct. This acquisition aligns with Fawkner Property’s focus on high-quality retail assets and further solidifies its presence in the Queensland market.

Townsville’s economic landscape played a key role in attracting investors to the Willows Shopping Centre deal. The city, known for its robust economy supported by industries such as defense, tourism, and a thriving port, offers a promising environment for commercial investments. With a growing population and strong consumer demand, Townsville presents an attractive opportunity for commercial property investors like Fawkner Property.

The sale of the Willows Shopping Centre reflects a broader trend in the retail property sector, where transaction volumes for Sub-Regional Centers have reached nearly $1.2 billion year-to-date in 2024. Despite a slight decline compared to the three-year average, the retail asset class continues to show resilience and improvement, drawing interest from investors seeking solid returns.

Fawkner Property’s acquisition in Townsville is part of its larger strategy to expand its retail portfolio across Australia. With total funds under management exceeding $3 billion, Fawkner Property has been actively acquiring retail assets in various regions, including recent purchases in Gladstone, Mackay, and Cairns. This move underscores the company’s commitment to diversifying its property holdings and capitalizing on growth opportunities in different markets.

The Willows Shopping Centre, boasting a substantial gross lettable area and a prime location, stands out as a premier retail destination in Townsville. Anchored by major tenants like Big W, Woolworths, Coles, and Aldi, the center enjoys strong leasing agreements with national retailers, ensuring a stable income stream for investors.

As the commercial property market evolves and investor interest remains high, strategic acquisitions like Fawkner Property’s purchase of the Willows Shopping Centre signal confidence in the long-term potential of Queensland’s retail sector. With a solid track record of successful acquisitions and a focus on high-quality assets, Fawkner Property continues to position itself as a key player in Australia’s commercial property landscape.