Continuing the high level of retail sales activity on the Gold Coast in 2015, the Banora Central Shopping Centre at Banora Point has been sold for $19 million.
In a deal negotiated by Jon Tyson of Savills, the centre was purchased by a private investor at a passing yield of approximately 6.49%.
Jon Tyson said Banora Central, located in a high-growth area on the southern end of the Gold Coast, attracted multiple offers from a wide range of buyers.
The property sold following an Expressions of Interest campaign.
Banora Central Shopping Centre, prominently located on a 13,340sq m site on the corner of Leisure Drive and Fraser Drive at Banora Point, serves the surrounding suburbs of Banora Point, Terranora and Tweed Heads South.
The 3,601sqm neighbourhood shopping centre is anchored by a strongly trading Coles Supermarket and is supported by a BWS liquor store, newsagent, combined chemist and medical centre, Zarraffa’s coffee outlet and two ATMs. It also features shaded and open grade level car parking for approximately 152 cars.
Jon Tyson commented: “the appeal of the centre was in its simplicity. With only four specialty tenants, the asset offered strong income security and little or no leasing risk. This feature, coupled with a low management requirement, was of particular appeal to investors. It was this income security and ease of management that set the centre apart from other assets."Banora Central Shopping Centre is well positioned to take advantage of strong population growth in the surrounding area, with the current main trade area forecast to increase to over 30,000 people by 2031.
This growth will be driven by several major residential developments in the area, including Newland Group’s proposed development of Altitude Aspire, a residential development on Fraser Drive with subdivision expected to deliver around 900 lots which will form part of a 296ha combined holding at Terranora that will accommodate some 3,500 people upon completion.
The sale of Banora Central Shopping Centre is the latest in a series of retail sales negotiated by Savills on the Gold Coast this year, and follows on from the sale of the Coles anchored Bell Central Shopping Centre at Mudgeeraba for $13.5 million and the sale of a brand new free-standing Kmart at Oxenford for $22.7 million, reflecting a record low yield of 5.95%.