$16m sale sets new benchmark
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.