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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.
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