Brisbane

Institutional investors make play for Ipswich growth assets

Queensland’s second fastest growing region, Ipswich, is rising on the radar of investors, with an uplift in institutional investment in the area highlighting the area’s strengthening appeal.

12 Feb 2018

Queensland’s second fastest growing region, Ipswich, is rising on the radar of investors, with an uplift in institutional investment in the area highlighting the area’s strengthening appeal. 

In a vote of confidence for the growing region, Charter Hall’s Direct Diversified Consumer Staples Fund has secured the North Ipswich Service Centre for $6,535,000– reflecting a yield of 6.27%. 

Charter Hall’s Head of Direct Property, Steven Bennett said: “Charter Hall Direct Property has a strong track record of creating institutional grade investment opportunities. This acquisition bolsters our investors exposure to a portfolio of commercial property assets leased by major Australian and international brands with resilient income streams.”

The centre is anchored by a Coles Express Shell service station and combined Brodie’s Chicken drive through. Coles Express has signed a 10-year triple net lease on 188sqm and Brodies Chicken has signed a 10-year net lease on 98sqm. 

CBRE’s Millan Narsey, Darren Collins and Joe Tynan negotiated the sale on behalf of Citimark Properties.

“This sale higlights the strengthening confidence from national institutional groups in Ipswich as a key investment location – attracted to the area’s strong growth fundamentals,” Mr Tynan said. 

“The favourable characteristics of this asset made it a strategic play for the purchaser, with a 9.4 year WALE and the brand new property being leased to Viva Energy Australia and located in a growing catchment.” 

In further evidence of institutional interest in Ipswich, newly launched petrol station property trust, APN Convenience Retail REIT, has purchased the Raceview Convenience Centre for $9.1 million. 

Located approximately  three kilometres from the Ipswich CBD, the 7-Eleven anchored centre at 63 Raceview Street comprises a quality mix of national food and beverage tenants, including BWS, Subway and Eagle Boys, offering a WALE of 4.5 years. The sale reflected a yield of 6.78%. 

The centre is underpinned by an expansive 3,090sqm landholding and offers 73 metres’ frontage to Raceview Street. 

Mr Narsey said the opportunity to secure a retail asset with strong national presence generated significant interest, with five offers received from interstate investors. 

“The service station convenience market remains robust, with strengthening investor appetite for quality centres that are underpinned by national retailers, irrespective of location,” Mr Narsey said. 

“Raceview is an established suburb that continues to benefit from the strong residential growth of Ipswich, which is identified as a key growth corridor of Queensland. This sale highlights the growing confidence and investment in this key location.” 

CBRE Research highlights the strong growth of Ipswich over the past decade, with it recording an average annual growth rate of 3.5% - significantly higher than the state’s 1.9% growth. Ipswich is the second fastest growing region in Queensland to the Gold Coast. 

Population projections indicate the region’s annual growth rate will increase to 4.2% - resulting in more than doubling of the population over the next nine years to reach almost 500,000 people. The region is also expected to be one of Australia’s major job creation zones over the next 20 years, with 56,000 new jobs created by 2031. 
 
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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 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 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.

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Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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 https://www.cbre.com.