LOW YIELD IN GOLD COAST SUPERMARKET SALE

Written on the 12 August 2016 by James Perkins

LOW YIELD IN GOLD COAST SUPERMARKET SALE WOOLWORTHS-anchored Reedy Creek Village Shopping Centre has sold for $20.5 million to a local investor on an yield of 5.9 per cent.

The sale was conducted by Stewart Gilchrist of Colliers International, together with Nigel Smith of Burgess Rawson and Leonie Smith of Smith Commercial.

The buyer was a family, with members based both on the Gold Coast and in Asia.

Supporting Woolworths are six specialities including BWS, Zarraffa's Coffee, Goldsteins bakery, a medical centre, hair salon, sushi bar and an ATM.

Gilchrist, who promoted the centre off market on behalf of a Gold Coast family developer, said a number of factors contributed to the yield.

"The centre is located in a fast growing neighbourhood and is 83 per cent occupied by Woolworths on a long term lease, until 2031.

"The yield on the sale was a crisp 5.9 per cent, reflecting the strong demand for supermarket based retail investments, especially where they are relatively new and contain long term covenants.

"There is still a very strong level of demand for shopping centres which is likely to continue given the ongoing sentiment of lower interest rates.

"Construction of new centres is rare with development projects very limited throughout Queensland. The demand is outpacing the supply, with not enough centres available on market for investment."

According to JLL's Australian Shopping Centre Investment Review and Outlook, released in February, the yield range for sub-regional centres in Australia was wide, at between 5.75 and 8.75 per cent and is on a downward trend.

"Transaction evidence that emerged between September and December 2015 showed sub-regional yields of between 5.75 per cent and 6.25 per cent, confirming a downward shift in yields for premium and mid-tier sub-regional centres," says the report.

 

Reedy Creek Village is located on Old Coach Road in Reedy Creek opposite the M1 Highway, on a 1.22ha site and features 3,279sqm of net lettable space with 192 car spaces.


 


Author: James Perkins Connect via: Twitter LinkedIn

Latest News

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

EAST COAST PROPERTY BOOM BUILDS PROFITS FOR BRICKWORKS

AUSTRALIA'S residential property boom has helped drive a sharp rise in first half earnings for Brickworks (ASX: B...

COLLINS SUPERSIZES IN EUROPE WITH PURCHASE OF 16 KFC RESTAURANTS IN THE NETHERLANDS

COLLINS Foods (ASX:CKF) has stepped up its European expansion through the purchase of 16 KFC restaurants in the Ne...

CSIRO HELPS DEVELOP AUSTRALIAN PHARMA COMPANY FROM $10 MILLION TO $305 MILLION

GOVERNMENT backed scientists have helped multiply the market value of a previously small Australian pharmaceutical...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter