High-Profile, Sunshine Coast IGA Shopping Centre Sells for $7.2 Million | JLL

Sale highlights investor appetite for well-leased retail assets in Queensland

Perth-based fund manager, Westbridge Funds Management has sold the IGA-leased Maud Street Grocer in Maroochydore to a private investor for $7.2 million.

JLL’s Ned McKendry and Liam Cox of the JLL Retail Investments team led the off-market sale, achieving a strong 5.51 per cent passing yield, boasting a $6,175 per square metre rate for the seller.

The centre was initially acquired by Westbridge for $4.675 million in June 2016 as part of their multi-asset diversified property fund, the MPS Diversified Property Trust.

Westbridge Funds Management’s Head of Commercial Funds, Alex Lambert, said the centre played an important role in strengthening the Fund’s asset mix. 

“This asset added important diversification to the Fund, providing exposure to both the Queensland market and the retail sector to balance its existing industrial holdings in Victoria and Western Australia, as well as exposure to strong blue-chip tenants in IGA and Pizza Hut.”

“Given the asset’s price point, strong tenancy mix and its location in the heart of the Sunshine coast, we were confident that there would be strong demand for the asset when it came time to divest,” said Mr Lambert. 

Located directly opposite the rapidly expanding Maroochydore central business district, the 3,247sqm site benefits from exposure to over 25,000 vehicles daily.

JLL’s Associate Director, Ned McKendry highlighted the centre’s focus on essential services and daily needs, noting its diverse range of retailers and untapped potential through the vacant first-floor tenancy.

“With a Weighted Average Lease Expiry (WALE) of 4.5 years by area and 4.4 years by income, the centre offers investors enhanced income stability, further reinforcing its attractiveness as a secure retail asset,” said Mr McKendry.

JLL Executive, Liam Cox noted a resurgence of local and interstate private investors, who are actively securing well-leased, IGA-anchored retail assets in Queensland.

“The sale reaffirms the resilience of the retail sector as a whole and underscores the strong demand for retail centres in the sub-$15 million price bracket,” said Mr Cox.