Melbourne buyer snaps up 20mretail asset in Australias melon capital
Melbourne buyer snaps up $20m+retail asset in Australia’s melon capital
| 16 September 2016
A Melbourne-based private investor has acquired the Woolworths Chinchilla shopping centre in Queensland’s Western Downs region in a deal valued at $20,055,000.
Michael Hedger and Joe Tynan of CBRE’s Queensland Retail Investments team negotiated the sale on behalf of a Brisbane based private owner.
The fully leased neighbourhood centre has a gross lettable area of 3,878qm and is anchored by a strong performing, 2,808sqm Woolworths supermarket.
The other major tenant is The Reject Shop, alongside four complementary specialty stores, an ATM and a kiosk. The centre occupies a 9,002sqm site, which provides for 177 car spaces.
Mr Tynan said the Expressions of Interest campaign attracted strong interest with over 70 enquiries and multiple offers received at the close. This significant demand translated to a yield on the sale of 6.38%, which reflected $5,171per square metre of building area.
The purchaser is experienced in the ownership of shopping centres with existing retail interests in Queensland.
Mr Hedger stated; “With interest rates at an all-time low, investors are increasingly looking at alternatives to low yielding investments such as term deposits. This is driving demand for smaller neighbourhood and supermarket-based retail centres which are less management intensive and offer long weighted average lease expiry profiles.”
“We have observed that a growing number of South East Queensland retail owners are considering their options, given the current strength of buyer demand,” Mr Hedger added.
Chinchilla is located approximately 160 km north-west of Toowoomba and 250 km north-west of the Brisbane CBD.
Mr Tynan said the centre enjoyed a prominent central position, capturing a strong Main Trade Area upwards of 80km, making it the dominant retail offering to a widespread region.
“The fact that 88% of the centre’s gross lettable area is leased to ASX listed retail companies - Woolworths and The Reject Shop – was a key attraction for buyers, providing a high level of income security,” Mr Tynan said.
Agriculture is the main driver of the local economy, with Chinchilla producing approximately 25% of Australia’s melons, making it one of the country’s largest single melon producing regions.
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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 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 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.