Coles seals deal to offload shopping centre for $49.5m

THE near-new Benowa Village shopping centre has been sold by supermarket giant Coles for $49.5 million in a record-breaking deal.

The sale is at a 5.08 per cent yield, which is being described as the lowest ever for a Queensland neighbourhood shopping centre.

The buyer is understood to be a Chinese investor.

The previous yield low for a Queensland neighbourhood centre was set in October when the Colesanchored Peregian Springs property sold at 5.35 per cent in a $41.5 million deal.

The fully leased Benowa Village, which opened in March 2016, was put on the market midyear through JLL retail directors Jacob Swan and Sam Hatcher.

Mr Swan yesterday said the sale reflected the significant interest being shown in high-quality neighbourhood centres, anchored by a single tenant, such as Benowa Village.

“We initially had 12 expressions of interest, arrived at a shortlist of five, and the ultimate buyer offered both the best price and conditions.”

The Benowa centre, on the busy corner of Ross St and Currumburra Rd, has net income in excess of $2.5 million.

Coles bought the 2.82ha site for $8.25 million in 2014.

Lisa Murdoch, a Gold Coast-based JLL valuation director specialising in the retail sector, yesterday said the Benowa Village sale reflected the value of long leases, quality tenants and new centres.