Nine Offers Underscore Growing Demand for Scarce Sub-Regional Shopping Centres

Stonebridge Retail Investments, in conjunction with JLL Retail Investments, has sold Pialba Place Shopping Centre in Hervey Bay, Queensland to an interstate private syndicate for $39.9 million following a competitive Expressions of Interest campaign which generated nine formal offers.

The result highlights the continued depth of capital seeking quality sub-regional retail investments at a time when opportunities to acquire assets of this scale remain limited. Just 11 sub-regional shopping centres traded nationally in FY26¹ while only eight new developments are currently proposed across the eastern seaboard with the nearest not expected to complete until 2029/30.²

Pialba Place occupies a substantial 4.38-hectare freehold landholding with more than 600 metres of combined road frontage and 4,449 square metres of surplus land.

The centre is positioned within the growing Hervey Bay trade area where population is forecast to increase by 2.2% per annum to 2031 which is 41% above the balance of Queensland. The broader $6.2 billion Fraser Coast economy is targeting a further $2 billion of growth by 2036³ and is supported by more than $10 billion in committed infrastructure investment including the $94 million Hervey Bay Hospital expansion and $108.7 million Hervey Bay City Centre community hub.⁴

The investment is anchored by a strongly performing Coles supermarket which recorded 14.17%* year-on-year MAT growth alongside the only Big W within the Hervey Bay trade area. 64%* of centre income is derived from non-discretionary tenants which provides a defensive income profile supported by strong underlying trade area growth.

The Expressions of Interest campaign was conducted by Stonebridge’s National Retail Investments team in conjunction with JLL Retail Investments and generated nine formal offers. The level of competition demonstrated the depth of capital currently seeking exposure to retail investments¹.

“Pialba Place attracted a strong level of competition throughout the campaign which reflects the limited opportunities investors have to acquire quality sub-regional shopping centres,” said Stonebridge Retail Investments National Partner Carl Molony. “The substantial underlying landholding combined with rental reversion potential and strong population growth provided buyers with a compelling investment proposition beyond the existing income profile.”

“Pialba Place is underpinned by a substantial 4.38-hectare freehold landholding, strong anchor performance and a defensive income profile, with the centre well positioned to benefit from continued population and economic growth across the Hervey Bay catchment,” said JLL Retail Investments Jacob Swan.

With virtually no new supply expected this decade, Swan said pricing tension is likely to persist. “There’s no pipeline coming to correct this,” he said. “Every genuine sub-regional campaign from here is going to be contested.”

¹ Stonebridge Research
² LocationIQ
³ Fraser Coast Regional Council
⁴ Win Projects; Queensland Government, November 2025; Fraser Coast Regional Council

*All figures are approximate only