Investors shop around in South Brisbane retail market

A Foodworks-anchored convenience centre at  Regents Park south of Brisbane has sold for $3.4 million.
A Foodworks-anchored convenience centre at Regents Park south of Brisbane has sold for $3.4 million.

Investor interest in the retail investment market south of Brisbane is showing no signs of slowing, with a Foodworks-anchored convenience centre snapped up and the Coles Group placing a prime retail pad site on the market.

The Foodworks-anchored convenience centre at 57 Emerald Drive, Regents Park, about 28km south of Brisbane’s CBD, was sold by a private investor to an interstate syndicator for $3.4 million.

Positioned on a prominent 3511sqm corner site, the sale of the 712sqm centre reflected a passing yield of 7% and rate per square metre of $4775.

CBRE’s Millan Narsey says the sale translates into a 21% value increase since the property’s purchase in 2013, and highlights the depth of capital seeking sub-$5 million retail investment properties.

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“The vendor decided to take advantage of the substantial yield compression in the current market. This compression in yield is not just isolated to Foodworks Regents Park; we continue to see astute vendors capitalising on the favourable conditions by selling now at a price premium,” Narsey says.

Meanwhile, the Coles Group has placed a prime retail pad site on the market in the rapidly expanding Yarrabilba Estate, south of Brisbane.

The 2564sqm lot is being carved off a larger site acquired by Coles, where it is planning the development of Yarrabilba’s first full-line supermarket adjacent to the pad site.

The Yarrabilba master planned community will be spread over more than 2000ha.

The Yarrabilba master planned community will be spread over more than 2000ha.

Yarrabilba is a large-scale fully master planned community and future city being developed by Lend Lease. Situated 40km south of Brisbane, the residential project comprises around 2029ha and is expected to deliver about 17,000 residential dwellings for an estimated 45,000 residents.

The pad site, which is earmarked for pharmacy and medical use, occupies a high profile location at the entrance to Yarrabilba Estate and adjoins the planned Coles supermarket.

We have already received strong enquiry from potential pharmacy and medical tenants

Peter Tyson, of Savills Retail Investments, says: “The site is unique both in terms of the pole position on the entry of the future city which is expected to become home to around 45,000 residents on completion.”

“We are anticipating strong demand from developers for this high profile site due to its prime location adjoining the Coles supermarket, which is due to open by November 2017.

“We have already received strong enquiry from potential pharmacy and medical tenants who are excited by the prospect of operating in such a promising location.”

The Yarrabilba site is being offered for sale via expressions of interest, closing in October.