Modern Gold Coast Neighbourhood Shopping Centre, anchored by SPAR, with future development opportunity hits the market

11 June 2024

Colliers list Crestwood Plaza, essential service shopping centre, huge interest expected from domestic and offshore investors

A Gold Coast neighbourhood shopping centre occupying a strategic 1.22 hectare site 6km from Surfers Paradise has hit the market, with strong interest from retail and ‘land bank’ investors anticipated.

Colliers experts James Wilson, Harry Dever, Tony Wang and Steven King are excited to present the opportunity to acquire this strategically positioned neighbourhood shopping centre, located at 458 Olsen Avenue, Molendinar, 6 kilometres north of the Gold Coast CBD and 65 kilometres southeast of Brisbane CBD.

The 3,848 sqm Neighbourhood shopping centre is anchored by Supa SPAR and supported by an additional 23 supporting specialty tenancies, featuring high profile retailers including Pizza Hut, BWS and Domino’s.

James Wilson, Head of Retail Middle Markets, said “Crestwood Plaza offers investors an opportunity to acquire a rare freehold neighbourhood shopping centre positioned in the heart of the Gold Coast, in one of the fastest growing cities in Australia.”

“Demand from both onshore and offshore private investors for investments anchored by supermarkets has demonstrated remarkable resilience amidst the current economic climate. The demand can be attributed to the secure income profile and non-discrestionary nature of such investments, coupled with their strategic positioning and inherent long-term development prospects”, James Wilson Said.

Harry Dever, Associate Director of Retail Middle Markets said, located adjacent to the $5 billion Health and Knowledge Precinct catering to university students, professors, health professionals and healthcare workers and with direct connectivity to Smith Street Motorway servicing 42,000+ cars was truly a unique position.

“And a low site coverage ratio of 31.6 per cent allows for future development upside and value add opportunities,” Harry Dever said.

“Queensland emerged as the leading market nationwide for neighbourhood shopping centres in 2023, boasting a total investment volume of $348 million, constituting 30 per cent of neighbourhood centres.

“Demand for these sorts of assets is primarily fuelled by the enduring strength of essential retail expenditure in Queensland, which remains resilient, with 7.0 per cent growth in supermarket spending within Queensland over the 12 months leading up to February 2024.

“As consumers grapple with the cost-of-living challenges in 2024, there’s a continued focus on non-discretionary retail, which is anticipated to sustain its resilience as essential goods and services remain indispensable to consumers,” Harry Dever added.

Colliers Director of Asia Markets Tony Wang said: “The landscape was predominantly shaped by investors and affluent individuals both onshore and offshore who are leveraging counter-cyclical market conditions and innovative funding approaches to secure assets, comprising 66 per cent of all investments in the neighbourhood market”.

Steven King, Director in Charge of the Gold Coast, said the centre was easily accessible to residents and tourists, enjoying good connectivity to the Gold Coast CBD, Brisbane CBD and extended area.

“The City of Gold Coast is one of the fastest growing cities in Australia, currently home to 635,000 residents and forecast to grow to 940,000+ residents by 2041. To accommodate this rapid expansion $18 billion in public and private investment is planned,” Steven King said.

“The Gold Coast is transforming into a world class city, dedicated to business growth, job creation and economic diversification, now is the time to invest.”

Crestwood Plaza boasts a secure long WALE of 4.25 years by Income, with national and chain tenants accounting for 74 per cent of GLA and 71 per cent of Income.

Colliers are exclusively marketing Crestwood Plaza via an Expressions of Interest campaign closing 2.00pm (AEST) on Tuesday, 2nd July 2024.