- A private investor pays $35.55 million for a non-metro neighbourhood shopping centre in Queensland
- The Woolworths-anchored Fernvale Village, located an hour west of Brisbane, drew 14 offers and sold for a 5.1 per cent fully-leased yield
- The 2.93ha property was sold on behalf of a private investor by CBRE’s Michael Hedger and Joe Tynan and Colliers’ James Wilson and Stewart Gilchrist
- The site’s 1.78ha commercial mall is accompanied by about 1.15ha of unoccupied land, with DA clearance for an additional 3,285sqm of retail gross floor area
A private investor has paid $35.55 million for a non-metro neighbourhood shopping centre in Queensland.
The Woolworths-anchored Fernvale Village, located about an hour west of Brisbane, attracted 14 offers and sold for a 5.1 per cent fully-leased yield.
The 2.93ha property was sold on behalf of a private investor by CBRE’s Michael Hedger and Joe Tynan and Colliers’ James Wilson and Stewart Gilchrist.
“The on-market expressions of interest campaign engaged over $450 million in value of offers from institutional and private capital, highlighting the depth of market for Queensland neighbourhood shopping centres,” Mr Gilchrist said.
“There was significant demand due to the asset’s standing as a rare core plus opportunity – an existing shopping centre anchored by a high-performing supermarket, with a turnkey development opportunity providing immediate capital value uplift,” Mr Tynan added.
Over the duration of the campaign, close to 170 inquiries were received, with the Woolworths site backed by The Reject Shop and 13 specialty retailers totalling 5,824sqm of gross leasable area (GLA).
The site’s 1.78ha commercial mall is accompanied by about 1.15ha of unoccupied land, with development approval (DA) clearance for an additional 3,285sqm of retail gross floor area.
“The purchaser’s interest was driven by the growth of the catchment area, which includes a proposal for an estimated 2,000-plus additional lots and significant infrastructure expenditure to service them,” Mr Hedger said.
There was $2.56 billion in value of neighbourhood shopping centres transacted in 2021, the highest level ever recorded for the sector, Mr Wilson added.
“The neighbourhood shopping centre sub-sector recorded 70 basis points of yield compression in 2021, compared to the previous year, driven by growing investor demand for essential service retail investments anchored by Woolworths and Coles,” he said.