Gold Coast Coles deal close to checkout
Shopping centre giant Coles is looking to join finance houses Alceon Group and CPRAM Investments by selling off a property into Queensland’s hot property market.
Neighbourhood shopping centre deals have jumped in the state despite relatively slow shopping centre sales nationally.
The finance groups last week sold a dominant Coles supermarket, Peregian Springs Shopping Centre, to a branch of Queensland’s Oxenford family for $41.5 million, on a tight initial passing yield of 5.35%.
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Now Coles is close to selling the Benowa Village Shopping Centre on the Gold Coast for a price close to $40 million on a similarly crisp yield of 5-5.5%, industry sources say.
Benowa Village was completed last year and the sale is being handled by Jacob Swan and Sam Hatcher of JLL, who declined to comment.
The centre also features a drive-through McDonald’s.
It comprises a supermarket, a McDonald’s drive-through, a Coles Express service station and 13 specialty stores.
The 4396sqm neighbourhood centre is the largest supermarket in the area, allowing it to capitalise on the fast-growing population and a jump in retail expenditure.
The Gold Coast has traditionally had an undersupply of full-line supermarkets with many prime developments bought by high-density residential developers. The earlier sale of the Peregian Springs centre, in its namesake masterplanned community on the Sunshine Coast, was handled by Hatcher, Swan and David Mathews of JLL and Peter Rossi and Michael Hedger of CBRE.
The 4772sqm neighbourhood centre is anchored by Coles and has 14 specialty tenants. The complex last traded in 2012 for $20.42 million but has been actively remixed in the past five years.
Last week in Queensland, the listed Shopping Centres Australia bought Sugarworld Shopping Centre in Cairns from an unlisted fund run by ISPT for $24.75 million.
The shopping centre sits along major Gold Coast arterials.
That centre is anchored by a Coles supermarket and has 12 specialty retailers and a Coles Express service station pad site.
That deal, negotiated by JLL’s Mr Hatcher and Mr Swan, for the convenience-based neighbourhood centre was also struck at a tight yield.
WA-based syndicator Properties & Pathways also bought a large format retail centre in Townsville for $16 million.
The Woolcock Street Supa Stores was sold by a North Queensland based private developer on an initial yield of 7.42%.
The 7563sqm centre is fully leased to four national tenants, including Fantastic Furniture.
CBRE’s Peter Rossi, Michael Hedger and Joe Tynan brokered the sale with Quinlan Property Group’s Michael and John Quinlan.
This article originally appeared on www.theaustralian.com.au/property.
