Charter Hall Retail REIT has purchased Brisbane's Arana Hills Plaza and an adjoining freestanding Shell Petrol for $67.1 million.
The sale was negotiated JLL’s head of Australasian Retail Investments Simon Rooney, together with JLL's Jacob Swan, on behalf of ISPT in a deal reflecting a capitalisation rate of six per cent and an initial yield of 5.85 per cent.
"We continue to see a depth of institutional investor interest in strong performing subregional shopping centres, especially for assets in metropolitan locations, with strong trading characteristics and secure tenure," Mr Rooney said.
“The subregional sector is on track for another significant year with $2.1 billion worth of transactions recorded for 2016, however below the record achieved in 2015 ($2.8 billion).
“However, a shortage of quality, large-scale retail investment opportunities has been evident, particularly in metropolitan Brisbane.
“This is particularly relevant for subregional shopping centres, with Arana Hills Plaza representing just the sixth subregional shopping centre sold in the last five years.
The centre’s expressions of interest campaign attracted significant interest from a range of investors such as institutions, syndicators and offshore investors, with 12 competitive bids received.