A leading Sunshine Coast shopping centre was purchased yesterday by Walsh & Company on behalf of Australian Property Opportunity Funds.
The full-leased shopping centres was acquired on a yield of 8 per cent per annum.
Noosa Village Shopping Centre transaction was held by Chesterton International’s Glenn Conridge.
Stuart Nisbet, Chairman of Fund’s Investment Committee said the well positioned shopping centre attracts both locals and tourists.
“Noosa is well positioned to benefit from the ongoing growth in the southeast Queensland region and will continue to strengthen its position as a premium destination for retirees and tourists,” Mr Nisbet said.
The centre has is anchored by Woolworths with an additional 21 specialty stores and 260 car spaces.
Major tenants include BWS, The Reject Shop, Amcal Chemist, Australia Post, Flight Centre, Optus and the Bank of Queensland.
Noosa Village Shopping Centre is fully occupied by national retailers accounting for 72 per cent of total income.
David Rogers, Director of Investments for Fort Street Real Estate Capital, the Fund’s Investment Manager said the centre will hold exceptional ling term results.
“Noosa Village Shopping Centre provides good long-term income growth potential, given its strong trading performance and low occupancy costs, and provides an attractive yield to investors at a time when interest rates are at all-time lows,” Mr Roger said.
The acquisition will be funded by the Fund’s debt facility with the Fund’s gearing moving to 40 per cent conservatively at the lower end of its 40 per cent to 50 per cent target.
With this acquisition the Fund is now fully invested, owning six neighbourhood retail and office properties on the east coast of Australia.