With investment in retail reaching record highs, the sale of the Capalaba Central Shopping Centre could fetch over $150 million.
The sale of the site owned by Dexus Property Group comes as Simon Rooney,
JLL’s Head of Retail Investments revealed the last two years has seen a rise in investment in regional shopping centres.
“We expect to receive strong demand for Capalaba Central given its metropolitan location and it being the first sub-regional centre to be offered for sale in 2015, with pricing in excess of $150 million,” Mr Rooney said.
“Nationally, demand from investors for sub-regional centres has been strong with AUS $2.5 billion and $2.3 billion transacting in 2014 and 2013 respectively.”
Last year Queensland amassed a total of $1.7 billion in retail transactions, which amounts to an increase of 20 per cent from the year 2013.
Mr Rooney predicts that high levels of activity in recent times mean that the Capalaba site presents its self as a rare opportunity in the coming year.
“We anticipate there will be fewer opportunities to acquire sub-regional centres following such high levels of transaction activity over the last two years,” Mr Rooney said.
The 10 hectare site 20 kilometres south-east of Brisbane’s CBD boasts a respectable amount of national and chain retailers with major tenants accounting for 67 per cent of the total Gross Lettable Area (GLA).
Mr Rooney attributes this to a national trend, which has seen tenant demand increase across the retail sector in recent years.
“JLL Research recorded a decline in the average South East Queensland vacancy rate (for specialty retail stores) from a high of 5.5 per cent in Quarter 4 2011 to just 3.9 per cent in Quarter 4 2014,” Mr Rooney said.
