Boronia Heights Shopping Centre sold for the first time in 30 years

IGA-anchored Boronia Heights Shopping Centre has changed hands for the first time in its 30-year history for $8.25 million.

CBRE’s Harrison Coburn brokered the sale of 115-119 Short Street on behalf of a private vendor with the price reflecting a 6.21% yield, one of the sharpest yields seen in the convenience centre sector this year.

The shopping centre was built in 1993 and has serviced the local catchment since its inception, embedded in a well-established residential corridor on Brisbane’s southside. The 1,200sqm centre consists of nine specialty retailers including BWS and is anchored by IGA with a strong tenant retention history. The property sits on a prime 5,837sqm corner and offers a low site coverage of 20%.

“With a limited number of IGA anchored Shopping Centre’s being formally offered to market and sold in QLD within the last 18-months, it is evident that these convenience centre investments remain tightly held and highly sought after, particularly assets that offer value add opportunities,” Mr Coburn said.

The Boronia Heights campaign generated more than 160 enquiries with six competitive offers received at the campaign close.

“Boronia Heights Shopping Centre is the second IGA anchored sale our team has handled this year including the recent sale of East Brisbane Marketplace for $16.25 million. Both campaigns generated significant enquiry and has uncovered new active groups seeking assets in the sub $20 million price point – a trend we expect to continue throughout the next 12 months.

“With 54% of the tenants occupying the centre for over 10 years, the buyer was attracted to the excellent tenant retention and how stable the income profile has been within the centre,” Mr Coburn added.

General Manager of Property Management at Geon Property and the incoming Property Manager of the centre, Dale Hermosilla-Silva said, “The purchaser’s decision to acquire Boronia Heights Shopping Centre was also driven by its potential for growth and value add opportunities.

“The new owner has future plans to enhance the centre’s appeal through comprehensive renovations, modernisation of amenities and strategic tenant mix.  These efforts aim to elevate the local shopping experience, attract a diverse range of quality tenants and foster positive community engagement,” he added.