$12.5M OFF-MARKET DEAL FOR CENTRE
Written on the 29 January 2016
A CHINESE investor has swooped on a Gold Coast shopping centre, snaring the asset for $12.5 million on a healthy yield.
The retail centre, on the corner of Abraham and Reserve roads at Upper Coomera, has been sold in an off-market transaction on a yield of 6.7 per cent.
The property, developed in 2005, is anchored by a 2500sqm Coles supermarket with just three smaller additional tenancies.
It has been sold by a private consortium based in Adelaide.
"We sold the centre to the current owners in 2009 and, six years later, the investment vehicle had reached the end of its planned investment horizon," says Peter Tyson, who negotiated the deal with Savills colleague Jon Tyson.
"The owners then approached us to sell the centre and preferred to act off market.
"The centre quickly generated offers from different groups, but was snapped up by a Chinese private investor.
"With only three speciality and major supermarket anchor, the centre has always been 100 per cent leased.
"As an offshore owner, the combination of the low leasing risk and ease of management had instant appeal to the buyer."
The latest deal comes on the heels of $32 million in sales recorded by the Savills duo on the Gold Coast in recent months.
The Banora Central shopping centre was sold for $19 million to a Sydney-based private buyer at a yield of 6.5 per cent, while the Bell Central shopping centre at Mudgeeraba was acquired by Clarence Property for $13.5 million. Both properties are anchored by Coles supermarkets.
These sales followed expressions of interest campaigns conducted by Savills.
Savills last year also brokered the sale of a brand new free-standing Kmart at Oxenford for $22.7 million, reflecting a record low yield of 5.95 per cent.