TAIWANESE SNARE BRONBERG PLAZA
Written on the 7 August 2014 by Nick Nichols
ASIAN buyers continue to buoy the Gold Coast commercial property market following the sale of Bronberg Plaza to Taiwanese investors for $14.4 million.
The deal, negotiated by Joshua Jeans of LJ Hooker Surfers Paradise, has been struck on a yield of 8.2 per cent.
Jeans says the off-market deal has been a more than two months in the making with the Taiwanese buyers specifically targeting an investment in south-east Queensland.
“The buyers were looking for centres anchored by IGA, Woolies or Coles, along with specialty stores with long-term tenants,” he says.
The deal marks the continued flow of fresh capital into Gold Coast retail property, driven largely by interstate and overseas interests.
The city’s largest retail deal was struck earlier this year when Marina Mirage owner, Adelaide investor Con Makris, paid $65 million for the retail precinct at The Oracle in Broadbeach.
Jeans says most buyers with which he is dealing are hunting for properties from $2 million to $10 million, while there is also solid interest between $15 million and $25 million.
Bronberg Plaza, located on Slatyer Avenue, comprises 2418sqm of retail space, anchored by Super IGA and a 7-11 service station.
The centre is also tenanted by an Amcal Pharmacy, Mrs Flannery’s, Pizza Capers and Café Republic and is close to full occupancy with just one 69sqm vacancy.
The property has been sold by Brisbane-based KGS Holdings Pty Ltd.
Jeans says the sale highlighted a wider trend of investor appetite for Gold Coast commercial assets, particularly among Asian buyers.
“LJ Hooker Surfers Paradise has successfully tapped into the Taiwanese and Chinese outbound direct-investment market in Australia,” he says.
“My current client base is seeking to acquire retail property assets with a national anchor tenant with the potential of providing a sustained income and medium to long-term capital growth.
“These sophisticated buyers are looking at returns of 7.5 to 8 per cent.”
He says the softening of the Australian dollar also has helped boost interest.
Author: Nick Nichols