Chinese investors buy up Brisbane shopping centre
Chinese investors have acquired the Central Park Shopping Centre in Brisbane’s southern suburb of at Calamvale on a passing yield of 6.72%, amid continued strong buyer demand for retail investment opportunities.
The shopping centre at 188 Algester Rd, which is anchored by an IGA supermarket, was one of two adjoining properties that sold for a combined $16.95 million.
The shopping centre component was sold to a private consortium of local and offshore Chinese investors for $9.65 million.
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The neighbouring medical and convenience centre at 168 Algester Rd, Calamvale, was also sold to a Brisbane-based development group for $7 million.
CBRE Retail Investments’ Michael Hedger says: “We continue to see a high level of enquiry from local and offshore investors seeking retail properties with strong investment fundamentals.”
“We expect continued yield compression for retail investments with good tenant retention, a consistent trading history and a long WALE while there is genuine capital in the investment markets.”
CBRE Retail Investments’ Joe Tynan says the purchasers of the supermarket already have a number of industrial assets in Brisbane and are keen to diversify their portfolio by sourcing a retail investment.
The underlying upside with the vacancy risk and short lease expiry profile was an attraction for the purchaser
“The purchasers were attracted to this asset as it boasts a large mix of food and beverage and service based retailers, offering them annuity style income streams,” Tynan says.
The sales deliver a superb result to the private owners who developed both properties about 15 years ago. It is understood they had intended to hold the properties long-term but believed it was an opportune time to capitalise on the current market conditions.
The 1870sqm convenience centre is located about 18km south of the Brisbane CBD on a site area of 7168sqm and is anchored by an IGA supermarket and 20 specialty retailers.
The adjoining property at 168 Algester Rd consists of a medical centre, six retail tenancies and 12 three-bedroom apartments.
“The underlying upside with the vacancy risk and short lease expiry profile was an attraction for the purchaser,” Hedger says.
Meanwhile, a syndicate of private Queensland investors has secured a prominent supermarket investment in the regional centre of St George, in the state’s southern inland region.
The Supa IGA supermarket at St George, more than 500km west of Brisbane, was acquired for $4.2 million, in a deal negotiated by Jon Tyson and Michael Harcourt of Savills Retail Investments.
Tyson says the expressions of interest campaign run on behalf of the property’s private owner attracted more than 140 separate inquires.
The freestanding 1500sqm property, which was developed in 2005, is fully occupied by a Supa IGA supermarket on a 15-year lease to 2020, plus three further five-year options to 2035.