Empirica Developments is moving to sell its Servico on Olsen project at Southport to capitalise on strong demand for high profile, blue chip retail investments.
Michael Hedger, Joe Tynan and Steve Clark from CBRE will steer the sale campaign for the prominent 501 Olsen Avenue retail centre in conjunction with Matt Maranta from Ray White Commercial Milton.
High profile national retailers account for over 70% of the income profile, including major occupiers such as Shell Coles Express, KFC and Starbucks, with the centre also offering a secure, long WALE of over 10 years.
CBRE’s Mr Hedger noted; “The strong national tenancy line-up and long-term lease covenants will be a key draw card for investors, including Shell on a new 15-year lease. The property also offers certain income growth, with 80% of the tenants on leases with favourable net lease structures, providing for annual rental growth of between 2.75% and 4%.”
The Brisbane-based Empirica developed Servico on Olsen in 2017. The new generation asset offers strong depreciation benefits, which will provide the incoming owner with tax effective income.
The investment has a prominent 128m frontage to Olsen Avenue, providing exposure to six lanes of traffic, a weekly average of 320,000 passing vehicles and convenient access via a three-way signalised intersection.
Mr Tynan said the strong forecasts for retail expenditure growth in the trade area would be another buyer drawcard, with projected annual growth of 5.6% forecast between now and 2031 – lifting retail expenditure to an estimated $361 million.
“The size and underlying value of the land creates a barrier to entry for similar competing centres as do town planning regulations that are very restrictive for this use,” Mr Tynan said.
The property also benefits from its location on one of the busiest north-south arterials on the Gold Coast, which is just off the Smith Street Motorway and services a large residential, commercial and industrial catchment. It is less than 2km from the Gold Coast University Hospital, Griffith University and the Gold Coast Health and Knowledge Precinct.”
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 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.