Benowa Gardens Shopping Centre on the Gold Coast has been sold for $40.1m to Brisbane based IJ Capital.
The vendor, Stockland acquired the asset for its unlisted retail fund back in 2006 for $26m. The Stockland Fund invested in two neighbourhood retail shopping centres and a large format retail shopping centre and elected to close the fund via an orderly sale of assets.
Benowa Gardens is a modern enclosed neighbourhood shopping centre, comprising a total GLA of 5,856.1sqm and 384 carparks. The Centre is an anchored by a Coles supermarket with 36 specialty tenancies, 1 kiosk and a freestanding KFC drive-through restaurant.
Stockland and Coles have agreed to extend the Coles lease which was due to expire in April 2022, subject to the completion of lessor works. Assuming those works complete, the WALE will extend to 6.97 years.
With a level of vacancy in the Centre, the passing yield of 6.3% extends to 8.3% if fully leased.
IJ Capital are new entrants to the market with a range of financial products and services for high net-worth customers and institutional investors, including Significant Investment Visa clients.
The Centre was marketed by Savills Brisbane retail team, generating over 233 enquiries in November last year.