Perth based syndicate Kerching Capital continues to expand its footprint in the retail investment market, after securing its third IGA-anchored shopping centre in Queensland for approximately $10.4 million.
In its most recent purchase, the property investment group signed the sale contract on Sandstone Village – a strong performing neighbourhood shopping centre located in the Brisbane suburb of Sandstone Point.
Comprising a net lettable area of 2,289sqm, the centre is anchored by a Supa IGA, medical practice and other national retailers including BWS.
The centre, which sold on a yield of close to 7%, also offers potential for future expansion.
CBRE’s Nick Willis and Michael Hedger transacted the deal on behalf of Properties and Pathways to fellow Perth based syndicate Kerching Capital.
Mr Willis said the decision to sell supported Properties and Pathways’ future growth strategy.
“The asset no longer fit strategy, given their move to intensify their mandate to grow and become a large format retail specialist on Australia’s east coast,” Mr Willis explained.
“This sale also marks the third IGA anchored neighbourhood shopping centre that Kerching Capital has now acquired via the CBRE Retail Investments team, in addition to Calliope Shopping Centre in 2015 for approximately $20 million.” Mr Hedger said.
Mr Willis said the sale highlighted growing momentum in the interstate market, with more investors opting to search outside their geographic boundaries for opportunities.
“Liquidity for interstate retail investment transactions is becoming increasingly prevalent as investors search further abroad for suitable opportunities and the market continues to strengthen,” Mr Willis said.
Properties & Pathways’ Director Cal Doggett said the sale achieved a fantastic result for its investors and also supported the company’s longer term growth strategy.
“The value add at Sandstone Point was a direct result of a sincere approach to working with our tenants, which helped manifest in high tenant retention and in attracting reputable operators to the centre. This was integral in stabilising a healthy WALE, which is a cornerstone of asset security from a purchasing perspective,” Mr Doggett said.
“The sale also supports a strong focus to build momentum in the large format retail space following our two most recent bulky-good acquisitions on the eastern seaboard and to leverage our membership to the Large Format Retailers Association earlier this year.”
“We remain focused on exemplifying a strong ability to transact and deepen our relationships with eastern state retailers and agents.”
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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.