Aggressive tactic pays off
Shopping centre sale tops $23m
A PRIVATE investor has snapped up Morningside Plaza Shopping Centre in Brisbane’s inner east at a sharp yield of 5.1 per cent matching the lowest recorded yield for a neighbourhood centre sale in Queensland.
The off-market transaction was brokered by Peter Tyson and Jon Tyson of Savills for $23.8 million on behalf of Melbourne-based veteran shopping centre developer and investor Lascorp Development Group.
The Coles anchored Centre is located in Morningside, about 5km radially east of the Brisbane CBD with frontage to Junction Rd.
The 4431sq m enclosed mall is anchored by a 3000sq m Coles Supermarket with nine specialty shops and carparking for 233 vehicles.
“Whilst Morningside Plaza was not for sale, we received an aggressively priced offer from a private investor to purchase the asset,” Peter said.
“The buyer was seeking a suitable metro asset and was attracted to the long-lease security from Coles in the inner Brisbane location.”
Savills also negotiated the sale of the centre to Lascorp in 2013.
Lascorp then undertook an extensive refurbishment and repositioning of the centre, significantly improving parking, traffic and shopper foot flow through improved vertical transport, mall upgrade works and tenant remixing.
“Metropolitan centres anchored by Coles or Woolworths in the sub $30 million price point are typically tightly held and have become an increasingly rare commodity in the marketplace,” Peter said.
“We expect yields for quality neighbourhood assets to remain firm throughout 2018, reflective of this strong ongoing demand and tight supply.”
For further information contact Peter on 0418 725 155.