Two adjoining Brisbane retail properties in Calamvale have been sold to separate purchasers for a combined total of $16.95 million amid continued strong buyer demand for retail investment opportunities.
Michael Hedger and Joe Tynan from CBRE Retail Investments negotiated the off market transactions of the Central Park Shopping Centre and adjoining medical and convenience centre at 168 & 188 Algester Road.
The deals deliver a record result to the private owners that developed both properties circa 15 years ago. The owners had intended to hold the properties long term, however due to the strength of the offers, believed it was an opportune time to capitalise on the current market conditions.
“We continue to see a high level of enquiry from local and offshore investors seeking retail properties with strong investment fundamentals. We expect continued yield compression for retail investments with good tenant retention, a consistent trading history and a long WALE while there is genuine capital in the investment markets,” Mr Hedger said.
The shopping centre component was sold to a private consortium of local and offshore Chinese investors for $9.65m, reflecting a passing yield of 6.72%.
The 1,870sqm convenience centre is located approximately 18km south of the Brisbane CBD on a site area of 7,168sqm. It is anchored by an IGA supermarket and 20 complementary retail specialties.
Mr Tynan said the purchasers already had a number of industrial assets in Brisbane and were keen to diversify their portfolio by sourcing a retail investment.
“The purchasers were attracted to this asset as it boasts a large mix of food & beverage and service based retailers, offering them annuity style income streams,” Mr Tynan said.
Also sold was the adjoining 168 Algester Road, which consisted of a medical centre, six retail tenancies and 12 three-bedroom apartments. The property has been acquired by a Brisbane based development group for $7 million.
“The underlying upside with the vacancy risk and short lease expiry profile was an attraction for the purchaser,” Mr Hedger said.