Perth-based property syndicator Kerching Capital has realised $12,600,000 from the sale of the Sandstone Point Village neighbourhood centre in Brisbane’s north.
CBRE’s Michael Hedger and Joe Tynan negotiated the sale following a competitive Expressions of Interest campaign which generated strong pricing compared to pre-COVID levels.
A private investor ultimately acquired the Sandstone Point property on an initial yield of circa 6.5%.
”In the current environment of low cash returns and cheap lending, we’re fielding strong interest in securely leased retail assets, however few quality properties are coming to market,” Mr Tynan said.
Mr Hedger added; “We continue to see strong demand for well-located neighbourhood shopping centres, particularly those that have traded well through the COVID period. Centres that offer a long WALE and demonstrate resilient income profiles are transacting at a premium.”
He noted that sale of Sandstone Point Village has highlight the depth of the investment market, with eight genuine bids received.
The property has a gross lettable area of 2,289sqm and is anchored by a strongly-trading IGA supermarket and a medical centre and pharmacy which occupied over 65% of the income.
The centre also comprises seven specialty stores, including BWS. Other tenants include a dentist, pharmacy and medical centre, providing a WALE of 5.8 years.
Mr Hedger noted that the property’s growing catchment area and future development potential had also helped draw buyer interest.
Sandstone Point is situated in the growing Moreton Bay region, approximately 2km south of Bribie Island, 15 km east of Caboolture, and 42 km northeast of the Brisbane CBD.
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
