Woolworths Mountview changes hands for $35.2 million

An offshore investor has purchased Woolworths Mountview for $35.2 million amid strong demand for Woolworths anchored neighbourhood shopping centres.

The recently constructed 4,981sqm neighbourhood centre is located 27km southwest of the Brisbane CBD and is anchored by a Woolworths supermarket, which occupies 3,846sqm, representing 77% of the gross lettable area (GLA).

CBRE’s Michael Hedger, Joe Tynan and James Douglas brokered the deal on behalf of Woolworths at a yield of 5.27%, representing one of the strongest results in the neighbourhood shopping centre market along the Eastern Seaboard in 2023.

“This sale follows three recently transacted Queensland campaigns by our team, involving the Woolworths-anchored Dakabin Shopping Centre, Bannockburn Village and Westpoint Shopping centre, for a combined $147 million,” Mr Hedger said.

“Investor demand in the private sector continues to build momentum, particularly for newly built assets as buyers take into consideration the replacement value of centres given the rising construction costs,”

Mr Tynan added, “These transactions have highlighted the depth of capital for neighbourhood shopping centres, with Woolworths Mountview attracting nine formal bids and four groups making offers close to the final pricing achieved.”

Mr Tynan said the purchaser was attracted to the proposed greenfield residential and commercial developments within the surrounding area, with the MAT retail expenditure expected to increase by 4.8% per annum until 2041.