Real estate funds manager and developer Folkestone is looking to put The Station Oxley in Brisbane's south up for sale, with prices for the asset expected to reach into the high $40 million.
The decision was made based on current investor demand for neighbourhood shopping centres, which seems to have been the correct trend to follow, as several investors have already expressed interest in buying the property.
"We think it is in the best interests of our investors to evaluate unsolicited offers," Folkestone head of real estate Ben Dodwell said to the Australian Financial Review, after confirming that the asset would be sold following strong off-market interest.
"We will put it to a vote if we see a compelling offer."
According to the AFR, off-market transactions and unsolicited bids have started to increase, as prices rise and competition mounts from investors chasing yield and long weighted average lease expiry (WALE).
The Station Oxley is located at 133 Oxley Station Road and was constructed in 2013.
The neighbourhood shopping centre is 7,100 square metres and is anchored by a Woolworths, Queensland State Government office and 17 specialty tenancies including Commonwealth Bank, BWS, Priceline and Flight Centre.
The Oxley railway station is in close proximity and provides income security with a WALE of 10.6 years. It is 98.9 per cent occupied.
"We have had some offers come through for that asset and we think we need to give some order to the way the process works," Mr Dodwell said.
The AFR said Folkestone has appointed JLL's Jacob Swan and Sam Hatcher to field offers before October 31.
"Investor interest for prime, metro Brisbane, long WALE retail centres is unwavering and we anticipate interest in the centre will be heightened," Mr Hatcher said.
"A number of mid-rise residential projects are under construction in the local area as a result of Brisbane City Council's support for increases in residential density around major transport nodes."