Neighbourly deals in demand
THE shelves may be thin on stock but the aisles of southeast Queensland’s retail property market are still thick with cashed-up investors.
At the top of their yield-driven shopping lists are supermarket-anchored neighbourhood retail assets like the Easy T Centre at Robina on the Gold Coast.
The 5880sq m shopping complex is set to change hands with fund manager Clarence Property divesting the corner holding for $35.8 million – a premium to its book value of $34 million.
It is understood the undisclosed buyer is a Gold Coast private investor “experienced in the retail industry”.
The yet-to-be settled deal – brokered by Knight Frank’s Mark Witheriff and James Branch in conjunction with CBRE’s Michael Hedger and Joe Tynan – is due to be finalised later this month.
Easy T Centres features a 1000sq m Spano’s Supa IGA supermarket, medical centre and 40 specialty retailers.
Clarence Property managing director Peter Fahey said the Robina property had been a blue chip asset for the company’s unlisted Westlawn Property Trust for more than a decade. “We decided it was the right time to divest the asset to allow WPT to expand its portfolio in the Brisbane-Logan corridor, which is the reason we recently acquired The Zone at Underwood,” he said.
Property records show Clarence Property acquired the Easy T retail complex and medical centre – spanning two titles on the corner of Christine Ave and Scottsdale Drive – in 2006 for $31.6 million.
Mr Witheriff said the asset had a five-year WALE (weighted average lease expiry) and generated a total rental income of $2,576,260 a year net.
More than 100 inquiries were fielded from investors across the eastern seaboard of Australia as well as Singapore, Hong Kong and Malaysia.
“Multiple offers were received and ultimately a local investor who had an in-depth understanding of the Gold Coast and the asset’s potential closed the deal,” Mr Witheriff said.
Mr Tynan, who also negotiated Clarence Property’s recent $31.25 million purchase of The Zone at Underwood, said the deals reflected lifting demand for quality neighbourhood retail centres.
“A lot of the major shopping centres across the Gold Coast and in Brisbane are being held and renovated, while neighbourhood convenience centres – particularly those positioned in high growth areas – are being taken to market and snapped up quickly,” he said.
“Easy T Centre’s main trade area is expected to grow by about 13,000 people by 2031, and there’s potential for the purchaser to make a development application for residential apartments within the site.”
Photo: Contributed