Coolangatta’s The Strand on the block
Gold Coast beachfront shopping centre The Strand at Coolangatta is on the market, in what shapes as one of Australia’s biggest commercial property deals of the year.
The renowned retail hub, which occupies prime real estate just metres from the famous Coolangatta Beach, is expected to attract wide investor interest, as well as a hefty price tag.
The shopping centre, which is anchored by a Woolworths, Aldi, BCC Cinemas, Timezone and Coolangatta Hotel and Boardriders, underwent a major $60 million renovation in 2015 and has a potential income – when fully leased – of $12.2 million per annum.
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Just 3km from Gold Coast Airport, the centre reputedly sees annual shopper spending of $1.4 billion.
Many of the centre’s tenants are on long leases, with the weighted average lease expiry currently at 7.7 years.
Stonebridge Property Group’s Philip Gartland and Carl Molony have been appointed to sell the property, with Gartland saying it presents a case for strong growth in the coming years.
“The long 7.7-year WALE, low average major tenant rentals, diverse tenancy profile and exposure to tourism growth are expected to appeal to a diverse buyer pool,” he says.
“The Strand at Coolangatta has a huge customer draw due to its unique tenancy mix and position at the heart of a tourist destination. The centre serves a total trade area of 679,190 people and is well positioned to draw trade from the rapidly growing domestic and international tourism industries.”
Molony says the Gold Coast market is predicted to strengthen further, due to major infrastructure upgrades.
“The Gold Coast is a highly sought after investment destination due to the significant investment in transport infrastructure and tourism assets. The $5 billion Gold Coast Light Rail, $1.5 billion Commonwealth Games and $300 million airport upgrade have solidified the Gold Coast’s position as an emerging World City”
“Coolangatta Beach is an iconic tourist destination and is again set for the world stage with the 2018 Commonwealth Games Beach Volleyball and the World Surf League’s Quicksilver Pro Gold Coast scheduled for March and April 2018”
“Retail in general is moving towards lifestyle assets that offer a diverse mix of food and entertainment. The Strand strikes an excellent balance of convenience retail with key destination tenants that extend its appeal”.
The shopping centre is for sale via expressions of interest, which close on April 12.