BIG BUYER INTEREST LANDS $14.5M RETAIL CENTRE DEAL
23 April 2015,
NEIGHBOURHOOD shopping centres have regained their pre-GFC shine as more than 230 potential buyers were edged out of a $14.5 million deal at Mt Warren Park.
The property, with 3841sqm of net lettable area set on a 1.57ha site, has sold to an undisclosed buyer on a potential yield of 7 per cent fully let.
It was the first time Mt Warren Park Shopping Centre, which is anchored by Coles, was offered to the market since it was developed in 2005.
The sale of the privately-owned centre, negotiated by Peter Tyson and Jon Tyson of Savills Retail Sales, attracted broad interest from private investors, syndicators and smaller REITs and fund managers.
"This level of enquiry is even stronger than the last boom and reflects the number of new entrants in the market adding to the overall weight of capital seeking investment in the retail sector," says Tyson.
"Neighbourhood-style shopping centres are clearly the preferred asset sub-class in the retail sector, with investors attracted to the Coles and Woolworths covenants."
The yield is reflected in the tenancy mix with more than 53 per cent of gross income secured by national retailers Coles and BWS. About 25 per cent of gross income comes from medical-related tenants including a pharmacy, medical centre, Australia Hearing Services and a dentist.
The property was sold via an expressions of interest campaign that closed on march 25. Details of the purchaser have not been disclosed.
Mt Warren Park Shopping Centre is located next to Beenleigh, midway between Brisbane and the Gold Coast .