The Mackay West Shopping Centre has changed hands for $10.4 million in a sign of ongoing demand for convenience focused retail assets.
CBRE’s Michael Hedger and Joe Tynan negotiated the sale of the North Queensland property to a Brisbane-based private investor.
The result, which translates to an initial yield of 6.75%, reflects the strong trading performance of the 331 Bridge Road property, which is anchored by a SUPA IGA supermarket.
“The property was sold off market following a direct approach from an investor seeking an IGA secured retail investment,” Mr Hedger said.
“In the current low interest rate environment, we’re fielding strong demand for retail assets which offer a resilient income profile and have strong investment fundamentals. However, a limited number of quality properties are formally available.”
The Mackay West Shopping Centre is anchored by SUPA IGA on a 20-year lease, representing over 80% of the gross floor area.
The property includes four speciality stores, including BWS and Sullivan Nicolaides. It offers a 9.78-year WALE and a large land holding of 9,227sqm in Mackay’s central activity precinct.
“Regional locations with exposure to major surrounding infrastructure projects are attracting investors interest and this is converting to strong pricing outcomes for non-discretionary based retail assets,” Mr Tynan said.
“This has been further evidenced by CBRE’s recent sale of Stockland Northshore in Townsville.”
About CBRE Group, Inc.
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.
