Fierce contest for large retail centre

A LARGE format retail centre in Queensland’s south-east was sold for $6.25 million to a private investor.

The property, tenanted by The Good Guys, is located at 190-194 Brisbane Rd in Ipswich and generated solid interest from more than 120 buyers, with multiple offers submitted during the sale campaign.

The deal was brokered by Savills retail director Jon Tyson who said the sale was well contested.

“Demand for large format retail assets remains strong across the nation and we see no change in the immediate future,” Mr Tyson said.

The deal reflected a firm yield of about 7% with the sale of the asset boosting the strong run of large format sales by Savills to more than $100 million this year. The 2438sq m property sits on a corner site in the heart of the main retailing precinct on Brisbane Rd, close to the Harvey Norman and Woolworths anchored Booval Shopping Centre.

“Large format retail centres were the best performing asset class of 2016, and the recent sale of The Good Guys Ipswich highlights the continuing demand for these properties,” he said.

“For a sector that was largely unloved during the GFC, it has come full circle with a range of investor groups now chasing this retail asset class.”

For further information contact Mr Tyson on 0424 506 124.