A convenience centre in Brisbane’s inner-north west suburb of Enoggera has been snapped up for $4.8 million.
The 206 Samford Road property, which is positioned on a 2,528sqm corner site, comprises a 1,010sqm retail convenience centre anchored by national tenants BWS and Anytime Fitness, as well as a number of smaller tenancies.
CBRE’s Millan Narsey negotiated the off-market sale to a local private investor on behalf of interstate Polley Family, with the transaction reflecting a yield of 6.52%.
Mr Narsey said the sale highlighted the strength of investment appetite for secure metropolitan convenience centres in strong residential catchments.
“We were able to secure an off-market purchaser easily given the strong appeal of this asset – being over 60% leased by high profile, national tenants,” Mr Narsey said.
“The centre’s inner-city location was also a key selling factor, with there being strong interest in the opportunity to secure a leased freehold investment on a highly exposed corner site just 6km from the Brisbane CBD.”
The property, which is located 300m from the Australian Army’s Enoggera Barracks, forms part of a larger retail destination with two neighbouring convenience centres in the established precinct.
Mr Narsey added: “Well located retail investment properties in the sub $5 million price range remain in strong demand, with private investors accounting for the majority of these acquisitions.
“Furthermore, with cost of capital remaining low and limited availability of smaller assets coming to market continues to drive yield compression in this sector.”
The sale adds to CBRE’s strong track record in convenience centre sales last year, with other transactions including the 1927 Beaudesert Road at Calamvale ($5.0 million); Foodworks Regents Park ($3.4 million), 28 Browns Plains Road, Browns Plains ($4.88 million) and 188 Algester Road, Calmvale ($9.65 miilion).
The 206 Samford Road property, which is positioned on a 2,528sqm corner site, comprises a 1,010sqm retail convenience centre anchored by national tenants BWS and Anytime Fitness, as well as a number of smaller tenancies.
CBRE’s Millan Narsey negotiated the off-market sale to a local private investor on behalf of interstate Polley Family, with the transaction reflecting a yield of 6.52%.
Mr Narsey said the sale highlighted the strength of investment appetite for secure metropolitan convenience centres in strong residential catchments.
“We were able to secure an off-market purchaser easily given the strong appeal of this asset – being over 60% leased by high profile, national tenants,” Mr Narsey said.
“The centre’s inner-city location was also a key selling factor, with there being strong interest in the opportunity to secure a leased freehold investment on a highly exposed corner site just 6km from the Brisbane CBD.”
The property, which is located 300m from the Australian Army’s Enoggera Barracks, forms part of a larger retail destination with two neighbouring convenience centres in the established precinct.
Mr Narsey added: “Well located retail investment properties in the sub $5 million price range remain in strong demand, with private investors accounting for the majority of these acquisitions.
“Furthermore, with cost of capital remaining low and limited availability of smaller assets coming to market continues to drive yield compression in this sector.”
The sale adds to CBRE’s strong track record in convenience centre sales last year, with other transactions including the 1927 Beaudesert Road at Calamvale ($5.0 million); Foodworks Regents Park ($3.4 million), 28 Browns Plains Road, Browns Plains ($4.88 million) and 188 Algester Road, Calmvale ($9.65 miilion).
For Australian/international news or global stories, follow us on Twitter: @cbreaustralia
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), 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 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 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.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), 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 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 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.
