Only way is up for retail

’Flood’ of assets tipped to hit Coast market as sector strengthens

A LEADING agent is tipping a flood of retail assets to hit the market this year after a Queensland buyer snapped up a neighbourhood shopping centre for more than $17 million.

Adelaide-based Prime Space Projects had taken the Crestwood Plaza to the market twice before, in 2018 and 2019, before a successful campaign led by Ryan Chandler and Stuart Gilchrist of Colliers International.

Earlier this year Mr Chandler secured Australia’s first Superspar as the anchor tenant after Spano’s Supa IGA – a founding tenant – ended its lease after a dispute over the centre’s expansion that ended up in the Supreme Court.

Spano’s sought damages from PSP but the court case was discontinued in July 2018 after mediation.

“I came in (after the 2018 and 2019 sale campaigns) and tried to strengthen the centre so we could create more security with a new anchor … (and) it improved the asset to a point where we got appointed to take it to the market formally,” Mr Chandler said.

The campaign never reached the open market because of an offer from a Queensland shopping centre owner, with assets on the Coast.

That offer went to contract at $17.55 million and finally settled on November 20.

Mr Chandler said the market for retail assets took a hit from COVID-19 after March but investors were now showing strong appetite for the asset class.

He is predicting a flood of retail investments to hit the market this year.

“Retail has strengthened to a point especially for neighbourhood centres which are viewed as secure,” he said.

“We are finding with investors there is nothing for them, they have been starved of opportunity.”

PSP bought Crestwood Plaza for $12.8 million at the end of 2010.

RETAIL HAS STRENGTHENED TO A POINT ESPECIALLY FOR NEIGHBOURHOOD CENTRES WHICH ARE VIEWED AS SECURE

RYAN CHANDLER