A Melbourne based private investor has purchased Bay Central Shopping Centre in Hervey Bay for $17.5 million.
The shopping centre which comprises three freestanding buildings totalling 6,452 NLA and car parking for 270 vehicles is positioned on 2.69 hectares land area with three street frontages.
The purchaser also acquired the adjoining parcel of vacant land which occupies 9,127sqm for $1.7 million on a 12 month deferred settlement period. They plan to use the land for future expansion purposes.
The three plazas are anchored by the six major banking institutions: Westpac, NAB, Suncorp, Commonwealth Bank, Bank of Queensland and ANZ which together contribute to over 50% of gross rental income for the centre.
Stewart Gilchrist of Colliers International and Linda Bland of Century 21 Hervey Bay jointly marketed the shopping centre for sale via expressions of interest campaign.
Mr Gilchrist said Bay Central contains all the ingredients of a quality property investment and whilst it didn’t contain a supermarket it did contain an above average component of quality national retailers.
“That coupled up with population growth dynamics of Hervey Bay, which is well above the Queensland average, are great components of a long term stable investment," Mr Gilchrist said.
“Regional shopping centres remain very tightly held, with the demand from the investment community far outweighing the number of assets available on the market. Interest is coming from all sectors of the market institutions, syndicates, property trusts and private individuals."Bay Central was originally owned by CRI Bay Central Project Pty Ltd, a subsidiary of Melbourne based Hostplus. Spiros Deftereos of Hostplus said the property was not core to their property portfolio so the decision was made to divest it.
Whilst the purchaser wished to remain anonymous it is believed they have a long history in Hervey Bay and the acquisition of Bay Central complemented the other properties they already own in the immediate vicinity.
Bay Central is located at 135 Boat Harbour Drive in the financial and retail hub of Hervey Bay, directly opposite Stockland Hervey Bay Shopping Centre.