The Metro Market neighbourhood shopping centre on the northern Gold Coast, has sold for around $39.4 million in an off-market deal brokered by Savills.
Sydney based boutique fund manager Argus Property Partners held the centre in a managed Fund since 2015 and sold to an undisclosed Melbourne-based private investor.
Metro Market is a two-level mixed-use neighbourhood retail centre located in the northern Gold Coast suburb of Biggera Waters.
With a total GLA of 6,967sqm, the complex features a 1,490sqm Drakes Supermarket, 33 specialty tenancies and on-site parking for over 400 vehicles on a 10,980sqm site. The property also includes a 2,500sqm office component, leased as a call centre, and which accounts for approximately 30% of the gross income for the Centre. The Centre featured a weighted average lease expiry (WALE) of around 3 years. The sale price is believed to represent a fully let passing yield of 7.7% however with an expectation that rents will revert to a lower market value over the near term, the market yield is much lower.
Selling agent Jon Tyson of Savills negotiated the off-market transaction and said “we are seeing robust ongoing demand for the neighbourhood centre asset class.”
“The sale of Metro Market illustrates the wider demand for retail assets from all investor groups including private investors, property syndicates and fund managers” Mr Tyson said.
As Australia’s sixth largest city, the Gold Coast continues to attract significant retail investment capital, with this latest sale following a range of other major transactions including Benowa Gardens for $60.5million, in a deal also brokered by Savills, as well as stakes in Pacific Fair, Runaway Bay Village, Harbour Town and Westfield Helensvale totalling close to $3billion.
The strong fundamentals of South-East Queensland, including population growth for the City of Gold Coast continues to drive increasing retail demand, which in turn has attracted established and new capital for retail assets.
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