Supermarket giant Woolworths is preparing to sell two of its newest neighbourhood shopping centre developments in South East Queensland amid continued strong demand for convenience-based retail investment opportunities.
CBRE’s Michael Hedger, Joe Tynan and James Douglas, together with JLL’s Jacob Swan, Sam Hatcher and Ned McKendry, have been appointed to sell the Dakabin and Bannockburn centres, both of which are anchored by long-term leases to Woolworths.
The assets are available individually or in-one-line, with the Expressions of Interest campaign expected to generate strong interest.
CBRE’s Mr Hedger said the campaign was expected to generate domestic and offshore interest from institutional investors, unlisted property funds and private buyers.
“We are continuing to see strong investor demand in the neighbourhood shopping centre sector, particularly for new assets which are strategically located in South East Queensland residential growth corridors. Based on recent campaigns, it is evident that high net worth investors have been the dominant purchaser group as they target long term income streams and assets like Bannockburn and Dakabin that offer strong investment fundamentals,” Mr Hedger said.
JLL’s Mr Swan added, “Both centres have been carefully curated to the highest standard by Woolworths Group and have been designed with a clear goal to maximise consumer convenience and accessibility. With discretionary spending likely to be affected in the short-term as consumers’ budgets are squeezed from inflationary pressures, demand for defensive, non-discretionary assets will continue to draw the most aggressive capital throughout 2022.”
Woolworths Dakabin is located 27km north of the Brisbane CBD in an area which has experienced average year-on-year population growth of 6.7% in the primary trade area over the past decade.
Future growth is forecast at 3.25% per annum until 2031, which will be a key driver of buyer interest in the 5,590sqm centre, as will the 10-year, 3,461sqm anchor lease to Woolworths/BWS.
Opened in late 2020, the centre has a strong focus on medical and allied health tenants, accounting for 15% of the income.
Woolworths Bannockburn is located 36km south of the Brisbane CBD on a 1.44ha corner site offering direct frontage to Beaudesert Beenleigh Road.
Woolworths occupies 80% of the 4,426sqm centre, which opened in September last year, generating 70% of the income, supported by eight specialty tenants including medical, food and beverage operators.
Similar to Dakabin, the centre is situated in an area which has experienced strong population growth, with the catchment population expected to increase by a further 50% between now and 2031.
Expressions of Interest in the two centre’s closes 17th November 2022 at 4:00pm (AEST).