Shopping centre potential in Gold Coast growth corridor
A multi-million-dollar shopping complex in a high growth corridor of the Northern Gold Coast has been put up for sale.
The 3,332 sq m site in Upper Coomera, known as the Woolworths Coomera East Shopping Centre, is anchored by a high-performing Woolworths and BWS store, with a rare 15-year lease.
Seven other specialty tenants make up the centre, including a Terry White Chemmart, with all spaces fully leased.
Listed through Stewart Gilchrist and James Wilson of Colliers the offering is expected to attract international investment interest due to the growth potential of the area and the centre’s current income of $1.3m a year.
Mr Gilchrist said the centre’s performance was underpinned by the catchment’s population growth, which is forecast to increase at almost two times the South East Queensland average.
“The centre has all of the vital ingredients sought-after by retail investors – a rare 15-year lease to Woolworths, a weighted average lease expiry of almost 12 years, net specialty leases, a location in one of the strongest population growth corridors in Australia, and a DA to build an additional eight-level building on site,” Mr Gilchrist said.
“We expect the investment opportunity to be targeted by ‘cashed up’ private investors and funds, given more than 80 per cent of the centre’s income is secured by a high-performing supermarket and supported by essential service retailers.”
Mr Wilson said: “Domestic buyers will likely face strong competition from Southeast Asian interests because of its strategic location in the Gold Coast’s highly prized northern growth corridor.”
The property is owned by Foxwell Road Centre Pty Ltd who developed the centre in 2015.
A value-add opportunity also exists on a vacant parcel of land to the south of the site, with a
DA in place for 51 residential apartments and 2,100sq m of retail/commercial suites.
The centre’s main trade area retail spending is estimated at $290.7m and is projected to increase to $624.1m by 2036, representing an average annual growth rate of 5.6 per cent.
Woolworths Coomera East Shopping Centre is being open to expressions of interest, closing at 2pm on August 3.