A savvy private investor has bagged a Brisbane shopping centre for $12.6m in a show of strength for the retail market.
The Sandstone Point Village neighbourhood centre was certainly hot property after a successful marketing campaign saw eight bids made for the Brisbane shopping precinct.
Perth-based property group Kerching Capital decided to cash in on the shopping centre asset that represents a solid investment for the new owner, with IGA supermarket the anchor tenant.
A CBRE sales team of Michael Hedger and Joe Tynan helped negotiate the sale of the Sandstone Point property 42 kilometres outside Brisbane’s CBD and Mr Tynan says his team were kept on their toes during the sales process.
“In the current environment of low cash returns and cheap lending, we’re fielding strong interest in securely leased retail assets, however few quality properties are coming to market,” he explains.
The property has a gross lettable area of 2,289sqm and includes seven speciality stores including a BWS as well as medical facilities such as a dentistry and a pharmacy.
We continue to see strong demand for well-located neighbourhood shopping centres, particularly those that have traded well through the COVID period.Michael Hedger – CBRE
Buyers were attracted to the shopping centre’s financial security with its weighted average lease expiry (WALE) of 5.8 years. Its location, in proximity to a growing catchment area of future development, also turned heads among investors.
“Centres that offer a long WALE and demonstrate resilient income profiles are transacting at a premium,” Mr Hedger says.