A Gold Coast Shopping Centre with substantial upside has sold for an impressive $17.55 million as investors flock to secure strong income generating assets.
Last week, Colliers Ryan Chandler and Stewart Gilchrist brokered the off-market deal at Crestwood Plaza, located at 458 Olsen Avenue, Molendinar on the Gold Coast.
Crestwood Plaza consists of a 1,140sqm Supermarket and 16 specialty shops covering over a 2,946sqm of lettable area fronting an on grade car park of 179 spaces.
The 1.22-hectare site Neighbourhood Centre was taken to market during 2018 and 2019 with competing agencies but failed to sell due to the short tenure of the anchor supermarket. The anchor tenant Spanos IGA, eventually vacated at the end of their lease term in late 2019 with a further 7 tenancies also vacating unable to survive without the major tenant in place and as a result of the COVID restrictions.
The vendor introduced a new anchor tenant lease with SuperSpar Supermarket on a 10-year initial term from February 2020 and was able to lease one of the remaining vacancies at $702/sqm gross.
The sale price reflected a current passing yield of ~6.9%.
Last week CBRE’s Michael Hedger and Joe Tynan sold the Sandstone Point Village neighbourhood centre in Brisbane’s north on behalf of Perth-based property syndicator Kerching Capital for $12,600,000, reflecting a 6.5% yield.
The property has a gross lettable area of 2,289sqm and is anchored by a strongly-trading IGA supermarket and a medical centre and pharmacy which occupied over 65% of the income.
The centre also comprises seven specialty stores, including BWS. Other tenants include a dentist, pharmacy and medical centre, providing a WALE of 5.8 years.
The retail investment market is currently starved of neighbourhood centres, and as such, investment opportunities of this size are quickly being absorbed at compressed sale rates, due to the lack of stock being offered to market.
Colliers anticipate there to be a flood of retail investment opportunities entering the market in the first half of 2021 as neighbourhood centres are stabilizing and strengthening following the retail uncertainty that COVID-19 brought.
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