Regional retail investments have once again shown their popularity amongst investors, following the sale of the Emu Park Village shopping centre on Queensland’s Capricorn Coast for $12.2million – setting a record yield for regional IGA anchored centres at 6.91%.
Purchased by a private Brisbane investor, the 16-22 Emu Street, Emu Park, shopping centre was constructed in 2011 and is anchored by a SUPA IGA.
CBRE’s Michael Hedger and Joe Tynan, in conjunction with Burgess Rawson’s Darren Beehag and Glenn Conridge, negotiated the transaction on behalf of Kerching Capital.
Mr Hedger said the opportunity was a strong investment proposition to a cross section of local and interstate groups, which subsequently prompted seven offers at the close of the Expressions of Interest campaign.
“We are noticing new lines of capital coming into the market, as well as groups that are taking a longer-term view with their investments and are willing to pay a premium for quality retail centres,” Mr Hedger said.
“The flight to quality, secure and high growth retail investments is evident with further yield compression continuing to be realised throughout 2017. We are noticing this yield compression mostly in regional areas, as investors are prepared to move up the risk curve in search of yield.”
Mr Beehag noted investors were attracted to the property’s strong main trading area and the SUPA IGA offering.
“Investors are increasingly seeking out SUPA IGA anchored centres because of the fixed annual rent reviews and annuity-style income streams. Additionally, Emu Park Village offers a secure WALE of over 8 years, attractive depreciation benefits and strong projected sales growth,” Mr Beehag said.
Kerching Capital Director Lloyd Edmunds added: “CBRE and Burgess Rawson assisted us in achieving our investment objectives earlier than planned with this particular asset, and we were happy to exit the investment on the back of some solid yield compression in regional Queensland. By divesting Emu Park Village, we can continue to focus on expanding our portfolio and generate strong returns for our investors.”
The 2,795sqm centre accommodates numerous strong trading tenants in addition to the SUPA IGA (Drake’s Supermarket), including Star Pharmacy and Degani’s Café. The site also comprises 63 car parking spaces.
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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 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.