Noosa Junction Plaza changes hands for $35.2 million

An interstate private investor has acquired Noosa Junction Plaza for $35.2 million from OzProp Capital, underscoring the continued depth of investor appetite for high-quality retail assets in tightly held locations.

The transaction, brokered off-market by CBRE’s State Director Michael Hedger and Joe Tynan on behalf of OzProp, reflects a yield of 5.31% fully leased, highlighting the strong underlying fundamentals of the asset.

Strategically located on a 7,904sqm landholding at 81 Noosa Drive in the heart of Noosa Heads, one of Queensland’s most renowned lifestyle and tourism destinations, the 5,126sqm fully-enclosed modern retail centre is anchored by a full-line Seasons IGA supermarket, KHub, and 4 Pines Brewery, supported by a mix of 17 specialty retailers.

Mr Hedger said, “This transaction highlights the continued depth in the retail investment market with strong investor appetite for quality neighborhood retail centres, particularly those underpinned in irreplaceable locations such as Noosa that also have significant underlying land value.”

Ozprop Capital purchased the property nearly 10 years ago for $16 million and undertook a refurbishment and a tenant repositioning program achieving a 15% IRR for its investors over the long term hold.

OzProp has been an active buyer and seller in both the retail and industrial sector transacting over $120 million in the past 24 months

Mr Tynan said, “With continued pressure on construction costs and feasibility challenges, we are seeing well established centres that have strong trading performances coupled with replacement cost that sit well above pricing highly sought after.”

Mr Hedger added, “This is the third retail investment that our team has transacted within the Noosa region over the past six months, totaling $90,000,000 with the coastal regions, particularly the Sunshine Coast, having strong attention from a new wave of investors in the market as they see the region undergoing significant growth.”