Gubuda Gordonvale Shopping Centre changes hands for $25.45 million

Fabcot has divested Woolworths-anchored Gubuda Gordonvale Shopping Centre in Cairns with an interstate private investor acquiring the property for $25.45 million.

The recently constructed 3,880sqm neighbourhood centre is located approximately 22km south of the Cairns CBD in Gordonvale. The centre is anchored by a full-line Woolworths Supermarket, occupying 85% of the Centre’s GLA and supported by five specialties, including national retailers Discount Drug Store and Dominos.

CBRE’s Michael Hedger, Joe Tynan and Danny Betros exclusively managed the on-market campaign which received strong interest and transacted for a 5.5% yield, one of the strongest yields seen in the regional neighbourhood centre sector in 2025.

Mr Hedger said, “Investor demand from the private sector and unlisted funds continues to build momentum, particularly in the regional areas of Queensland as we see an emergence of new investors in the markets representing 32% of the enquiry.”

Mr Hedger noted this is the first neighbourhood shopping centre this buyer has acquired, with the centre representing excellent value with replacement costs far exceeding the asset value, underpinning future growth and restrictive barriers of entry.

The centre is positioned at the heart of the future Gordonvale town centre precinct and adjoins a future land lease residential community development of over 300 lots, complemented by a brand-new KFC, McDonalds (under construction) and additional national retailers.

Mr Tynan said, “Throughout 2025, the RBA has cut rates by 75bps, resulting in stronger enquiry levels across all retail investment campaigns and noticeable yield compression being seen for assets that represent good growth and strong investment fundamentals.

“These transactions have highlighted the depth of capital for neighbourhood centres as we continue to see rising construction costs,” he added.

This is the fourth regionally located QLD neighbourhood shopping centre that CBRE has transacted YTD, following Clifton Village Shopping Centre ($34m), Gladstone Square Shopping Centre ($26.7m) and North Shore Marketplace ($33m).