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MUDGEERABA Market, one of the Gold Coast's favourite suburban shopping centres, has changed hands for $35.8 million following a heated sales campaign which attracted attention from offshore buyers.
Although contested by numerous private investors from Asia, Sydney-based SCA Property Group ended up winning the sale at an estimated blended yield of 6.1 per cent.
The blended yield reflects SCA's purchase of the main centre in addition to the adjoining Franklin Square retail arcade.
Peter Tyson, national director of retail investments for Savills, says the sales campaign attracted interest from both private and institutional investors, largely from Asia.
He says the sale is in line with the current trend toward neighbourhood retail asset acquisition, and also speaks to the Gold Coast's growing popularity as an investment destination.
"The offering generated over 200 separate buyer enquiries, which is testimony to the depth of interest for this popular asset class and provides an indicator of the weight of capital targeting the neighbourhood retail sector," says Tyson.
"Whilst the buyer was an Australian listed REIT, it was interesting to see numerous private investors from Asia compete for the offering, including bidders from China, Taiwan, Thailand and Singapore.
"Over recent years we have found the Gold Coast is increasingly on the radar of such groups as an investment destination."
Mudgeeraba Market was originally constructed in 1993 and consists of 5,047sqm, 26 specialty shops and a Woolworths Supermarket.
The adjoining Franklin Square is a two-level retail and commercial arcade boasting a further 16 tenants.
Mudgeeraba Market's previous owners were private investors who owned the property for 20 years.
Business News Australia
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