A Brisbane-based private investor has paid $4,880,000 for the Plains Junction Shopping Centre in Browns Plains, signaling strong ongoing buyer demand for retail investment opportunities in South East Queensland.
CBRE’s Michael Hedger and Joe Tynan negotiated the sale of the retail convenience centre, which is located in the heart of one of Brisbane’s strongest retailing precincts.
Mr Tynan said buyers were attracted by the projected growth in the Main Trade Area, with the area’s expanding population expected to support 4.68% per annum growth in retail expenditure – significantly higher than the Brisbane average.
”This sale demonstrates the continued buyer appetite for secure investment opportunities at a time when the cost of debt remains low and funding is both available and competitive,” Mr Hedger said.
The 28 Browns Plains Road asset was sold on behalf of the long term owner – a Sydney investor who had owned the property for 10 years and took the opportunity to capitalise on the current strong market conditions.
Mr Hedger said the centre had a strong national tenant profile with Westpac and Suncorp occupying over 80% of the building area, alongside major national brands Woolworths, Officeworks, BCF and McDonalds.
It benefits from 63 metres of street frontage, direct access off the Mount Lindsey Highway and its close proximity to the Grand Plaza Regional Shopping Centre, Village Square and Browns Plains Town Centre.
Mr Tynan said the Expressions of Interest campaign had attracted over 110 enquiries, with the strong buyer interest resulting in a tight sale yield of 6.3%.
The purchaser of Plains Junction Shopping Centre was represented by commercial buyers’ agent Damien Holliday from Prosper Group. Mr Holliday said the property offered good long term investment fundamentals and noted that many buyers chasing a strong investment were focusing too much attention on just the length of a property’s lease terms and the strength of the tenant rather than the underlying fundamentals.
“Investors can buy good long term commercial investments in any market - even a strong market - as long as though they are basing their decisions on strong investment fundamentals,” Mr Holliday said.
“Small to medium sized retail centres such as Plains Junction are more common in Brisbane and very rarely become available for sale in the Sydney metropolitan areas. They provide a good entry level for most investors looking to build a commercial property portfolio as they are typically in the $3 million to $6 million price range and offer diversification across multiple tenants.”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.
