Centre fetches $3.5m

A SUPERMARKET-anchored shopping centre in the Gold Coast Hinterland has sold under the hammer as buyers continue to cram the aisles of the investment market for convenience-based retail assets.

Canungra Shopping Centre has been snapped up by a Gold Coastbased private investor with a winning bid of $3.5 million, reflecting a yield of 8.7 per cent.

The fully-leased asset sits on a 2428/sq m site along the Canungra township’s main thoroughfare at 14-16 Christie Rd.

It comprises four tenancies occupying a total net lettable area of 882/ sq m with a WALE (weighted average lease expiry) of 7.7 years.

The anchor tenant is a full-line FoodWorks supermarket spanning 662/sq m, which it is committed to leasing until March 2028. It also holds three five-year options.

Other tenants in the single-level centre include a bakery, hair salon and confectionery store. It was taken to auction with a net rental income of $305,592 a year.

Marketing agents Ryan Chandler and Stewart Gilchrist from Colliers International fielded strong interest, with more than 60 inquiries from a mix of local and interstate investors.

On auction day, there were a handful of registered bidders and bid- ding kicked off at a low $2 million be- fore gaining momentum.

Mr Chandler said the sale reflected the prevailing strong appetite for food and convenience-based retail assets from cashed-up private investors and self-managed superannuation funds.

“Anything convenience and service-based with good lease terms is definitely in demand,” he said.

“This property is a prime example of a defensive investment with a long WALE in place.”