$16m sale sets new bench­mark

Daily Mercury - - REAL ESTATE -

A PROM­I­NENT Bris­bane con­ve­nience cen­tre has sold for $16 mil­lion in the lat­est sign of in­vestor de­mand for pre­mium re­tail in­vest­ment op­por­tu­ni­ties.

CBRE’s Michael Hedger and Joe Ty­nan sold Won­dall Road Vil­lage on be­half of Bris­bane syn­di­cate Lomin Hold­ings. Fol­low­ing a com­pet­i­tive ex­pres­sions of in­ter­est cam­paign, the cen­tre was ac­quired by a Gold Coast fam­ily on a yield of 6.08%.

“The yield achieved is the strong­est that we have seen for an IGA-an­chored as­set in Queens­land,” Mr Hedger said. “We con­tinue to see new sources of cap­i­tal en­ter­ing the mar­ket that are pre­pared to pay a pre­mium to se­cure re­tail as­sets that of­fer strong in­vest­ment fun­da­men­tals.

“Pre­mium re­tail in­vest­ments in Bris­bane are rarely of­fered to the mar­ket and given the strength of the prop­erty’s lo­ca­tion, ten­ant covenant and in­come se­cu­rity, Won­dall Road Vil­lage ap­pealed to a wide range of in­vestor groups, both lo­cally and off­shore.”

The near new, 1873sq m con­ve­nience cen­tre in­cor­po­rates an IGA su­per­mar­ket, a BP ser­vice cen­tre and a five-bay car wash, in ad­di­tion to eight spe­cialty stores, com­prised mainly of food and bev­er­age and med­i­cal re­tail­ers.

Lo­cated 15km east of the Bris­bane CBD, the cen­tre ben­e­fits from its high-pro­file lo­ca­tion at the in­ter­sec­tion of Won­dall and Rad­ford Rds, along­side a Bun­nings Ware­house. The site area is 9712sq m.

Mr Ty­nan said the sale cam­paign had rep­re­sented the first op­por­tu­nity to buy the prop­erty since its devel­op­ment.

“Strong lo­cal, in­ter­state and off­shore in­quiry was re­ceived from pri­vate high net worth in­di­vid­u­als and syn­di­ca­tors,” Mr Ty­nan said.

“We re­ceived a to­tal of 72 in­quiries, with six for­mal po­si­tions put for­ward that were all very com­pet­i­tive.”

Mr Ty­nan said the re­sult fol­lowed a se­ries of strong sales trans­ac­tions un­der­pinned by IGA lease covenants.


NEW OWN­ERS: Won­dall Road Vil­lage fea­tures an IGA su­per­mar­ket, a BP ser­vice cen­tre, a five-bay car wash and eight spe­cialty stores.

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