Gladstone Central shopping centre, including both the Spotlight Centre and the Night Owl convenience centre, has been sold to an experienced retail property syndicator for $20,200,000.
The sale demonstrates that there is national investment support for Gladstone in both the private and public sectors. Significant infrastructure projects in the pipeline, including three liquefied natural gas projects on Curtis island, a new coal wharf on Wiggins Island and the Yarwun alumina refinery, have contributed to the ongoing revival of the Gladstone regional economy.
The sale was instructed by the Mortgagee in Possession, Restructuring Solutions - Chris MacDonnell, acting on behalf of a major investment banking client. CBRE’s Peter Rossi and Darren Collins took the property to a national campaign which attracted interest from investors from around the country. The sale was finalised last week.
“Most buyers were impressed with the continued growth of the region, which is supported by multiple significant infrastructure projects,” Mr Rossi said.
“Bill Shorten’s support for the establishment of Gladstone as the hub for the National Hydrogen Strategy’s proposed $1bn investment in the hydrogen energy industry, if Labor wins the election was seen as a positive.”
CBRE’s Mr Rossi said the property presented a value-add opportunity for the purchaser to maximise the income through an aggressive leasing, re-mixing and management strategy focussed on the available tenancies, with a replacement cost of more than double the purchase price. The centre has 366 carparks with direct access from the Dawson Highway offering drive-up convenience.
Gladstone has improving business and consumer confidence with the region’s Gross Regional Product growing 17.5% since 2016/17. Reflecting this, the centre’s Main Trade Area retail expenditure, is forecast to grow from $1.10 billion in 2017 to $2 billion by 2031 according to Location IQ.
“The centre’s design provides a highly convenient retail offering, which is supported by Large Format Retailers REPCO and Spotlight and the only cinema complex in the city,” Mr Collins said, adding that the tenants benefited from direct drive up access and ample parking.
Based on the current passing income, the sale price translates to an initial yield of 11.6%. The centre has a gross lettable area of 12,579sqm and is situated on a prominent 18,914sqm site.
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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.