Brisbane shopping centre’s $78m sale a record
A retail complex on Brisbane’s outer fringe has sold for $78.35 million — on a low 5.19% yield — in a record transaction for Queensland.
The Woolworths and Aldi-anchored MarketPlace Warner sold to an AMP Capital-managed private client.
The centre was extensively refurbished in 2014 and includes the two major supermarkets as well as 37 specialty tenants and four kiosks, a Goodstart childcare centre and more than 4300sqm of additional space.
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Negotiated by JLL’s Jacob Swan and Sam Hatcher, the deal highlights the strong market in retail assets.
“Opportunities of this nature, combining a very high-performing centre with significant future development upside, are exceptionally rare, which was reflected in the strong level of genuine interest from both major institutional and high net worth private buyers,” Mr Hatcher said.
Neighbourhood shopping centres have been tightly held this year compared with last year but there have been 10 transactions in Queensland.
By mid year there were $347 million worth of neighbourhood centres traded, compared with a total of $1.6 billion last year.
A retail centre managers’ survey conducted by JLL and released last month found refurbishments and incentives were increasing amid pressure on rental incomes.
Neighbourhood centres experienced a rise in vacancy to 3.3% but the average spend per customer increased.
Amid concern around the impact of internet retailers in Australia — notably the arrival of Amazon — centre managers were adapting to expand their shop-based offerings.
“A redevelopment upswing is under way as owners reconfigure and refurbish shopping centres to install technological infrastructure for customer analytics, to provide upgraded and expanded dining precincts and to introduce new brands and services to centres,” the report says.
This article originally appeared on www.theaustralian.com.au/property.