CHINCHILLA SHOPPING CENTRE SELLS FOR $20 MILLION

Written on the 16 September 2016

CHINCHILLA SHOPPING CENTRE SELLS FOR $20 MILLION

A MELBOURNE-based private investor has bought the Woolworths Chinchilla shopping centre in Queensland's Western Downs region in a deal valued at $20,055,000.

Michael Hedger and Joe Tynan of CBRE's Queensland Retail Investments team negotiated the sale on behalf of a Brisbane-based private owner.

The fully leased centre has a gross lettable area of 3,878qm and is anchored by a 2,808sqm Woolworths supermarket. The yield was 6.38 per cent, reflecting $5,171 per square metre.

"With interest rates at an all-time low, investors are increasingly looking at alternatives to low yielding investments such as term deposits. This is driving demand for smaller neighbourhood and supermarket-based retail centres which are less management intensive and offer long weighted average lease expiry profiles," says Hedger.

The other major tenant is The Reject Shop, alongside four complementary specialty stores, an ATM and a kiosk. The centre occupies a 9,002sqm site, which provides for 177 car spaces.

Tynan says the expressions of interest campaign attracted more than 70 enquiries and multiple offers at the close. The purchaser is experienced in the ownership of shopping centres with existing retail interests in Queensland.

Chinchilla, which produces around 25 per cent of Australia's melons, is located around 160 km north-west of Toowoomba and 250 km north-west of the Brisbane CBD. The centre's main trade area stretches more than 80km.

"The fact that 88% of the centre's gross lettable area is leased to ASX listed retail companies - Woolworths and The Reject Shop - was a key attraction for buyers, providing a high level of income security," says Tynan.

Read more commercial property stories from Business News Australia:


Latest News

BELLAMY'S FINDS EXPORTING BABY FORMULA INTO CHINA IS NO CHILD'S PLAY

BELLAMY'S (ASX: BAL) shares have suffered a 40 per cent drop in value today after the company hit a regulatory...

BRISBANE WATCH BRAND ADINA AIMS FOR ICONIC

ADINA watches is at a turning point in its history, 45 years after being founded by Robert 'Bob' Menzies i...

WHY YOU SHOULD CARE FOR YOUR BODY AS MUCH AS YOUR BUSINESS

ENTREPRENEURSHIP is a busy business. It can be all-consuming, but it is important not to neglect your health Y...

BULLETS BACK IN THE BUSINESS COMMUNITY

ALTHOUGH new to the current south-east Queensland sporting landscape, the Brisbane Bullets have a rich basketball ...

Related News

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

BIG W CEO QUITS AFTER 11 MONTHS

SALLY MacDonald has resigned as chief executive of BIG W ending her tenure at the helm of the struggling discount ...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter