Strong investment appetite for well-located convenience centres has underpinned the sale of Urban Village in Brisbane’s inner-east for $9.125 million – marking a record result in Queensland’s retail market for convenience centres over $5 million.
The Urban Village centre, located at 953-965 Wynnum Road, Cannon Hill, comprises a mix of 10 convenience, food & beverage and service based tenancies, including anchor tenant Night Owl.
The centre, which is located 6.5 kilometres east of Brisbane’s CBD on a 3,282sqm corner site, offers more than 83 metres’ main road frontage, with exposure to around 30,000 vehicles each day.
CBRE’s Joe Tynan and Millan Narsey, jointly with MDM Group’s Michael Maguire, negotiated the sale to private investor, Jane Darveniza, with the transaction reflecting a yield of 5.96%.
The purchase marks one of Ms Darveniza’s first retail acquisitions – adding to her already extensive property portfolio.
Mr Narsey said the property’s high profile location, attractive tenancy profile and future development potential were the key factors that drove investor interest during the campaign.
“Due to the high quality attributes of the asset, a significant level of enquiry was received – culminating in more than 150 interested parties and nine formal expressions of interest,” Mr Narsey said.
“The strong food and beverage offering was a unique proposition to the investor given the strong continued growth in food retailing, which has outperformed the 10-year Total All Industries Index.”
Mr Tynan commented: “We continue to see strong demand for convenience centres, especially in the Brisbane metropolitan market. Buyers are attracted to the relatively stable income returns and prime locations, supported by higher weightings to non-discretionary retailing as well as being less management intensive.”
The transaction, which reflected a square metre rate of $9,790 is the highest ever paid for a retail convenience centre in Queensland.
“While this was an excellent result, it was not unexpected based on the exceptional fundamentals of this centre with respect to the tenant mix, net lease structures and reliability of the income,” Mr Maguire said.
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