Woolworths-anchored Warbu-Bellmere Shopping Centre sells for $37.75 million

Supermarket giant Woolworths has sold the recently opened Warbu-Bellmere Shopping Centre to a Melbourne-based private investment group for $37.75 million, setting a benchmark for neighborhood centre transactions in 2024.

Situated along the Brisbane to Sunshine Coast growth corridor, the 5,164sqm shopping centre opened in August 2023. Warbu-Bellmere Shopping Centre is underpinned by a 10-year lease to Woolworths, which occupies 71% of the centre’s gross lettable area and serves as the largest full-line supermarket in the main trade area.

CBRE’s Michael Hedger and Joe Tynan brokered the sale on behalf of Woolworths Group with the sale price reflecting a 5.52% yield. 

The centre features the latest format Woolworths Direct-to-Boot drive-through service, and includes an alfresco food and dining precinct with cafe, pizza, kebab and sushi operators. Key tenants include BWS, Discount Drug Store and Snap Fitness. 

Warbu-Bellmere Shopping Centre is positioned to benefit from the significant growth corridor of Caboolture West, a high priority growth area expected to see population increase of 6.9% per annum over the next 15 years along with strong retail expenditure growth of 4.2% per annum.

“With the increasing costs in construction putting pressure on new supply and future development feasibilities, we continue to notice strong demand from the private investment sector and a wave of new entrants into the sector seeking long term investment opportunities,” Mr Hedger said.

CBRE research shows total shopping centre sales volumes have significantly declined due to economic uncertainty stemming from the high debt environment. However, the neighbourhood sector has continued to dominate the total national sales volume accounting for 64% of all shopping centre transactions as investors look for resilient assets with predictable cash flow in these economic conditions – a trend that is forecast to continue.

Mr Tynan added, “Bidding was very competitive with multiple offers presented and the purchaser securing the property on an unconditional basis. A noticeable trend we are seeing is a higher percentage of Victorian-based investors purchasing assets in Queensland due to the new imposed land tax laws introduced in Victoria.”