Sale highlights investor focus on centres with income growth via non-discretionary retailers.
Northway Plaza, a prominent North Bundaberg neighbourhood shopping centre anchored by a full-line Cornetts IGA supermarket, has been acquired by a local syndicate for $18.54 million.
Located at 29 Queen Street, North Bundaberg, the property changed hands following a competitive Expressions of Interest (EOI) campaign managed by JLL’s Retail Investments team.
JLL Associate Director, Ned McKendry and Senior Director, Jacob Swan led the sale, achieving a 7.15 per cent yield and a rate of $4,852 per sqm for the seller.
“This transaction underscores the ongoing demand for regionally located, supermarket-anchored neighbourhood shopping centres that provide income growth through non-discretionary retailers,” Mr Swan said. “Northway Plaza exemplifies this trend, with its full-line Cornetts IGA supermarket and a complementary mix of 11 specialty tenants focused on non-discretionary goods and services.”
The centre’s tenant mix includes established retailers such as Ramsay Pharmacy, Sullivan Nicolaides, and Liquor Stax, further enhancing its appeal to investors seeking stable, long-term income streams.
Mr McKendry added, “The property’s location in North Bundaberg’s strongest growth corridor positions it to capitalise on the region’s robust population growth – one of Queensland’s fastest-growing areas outside the south-east.”
The investment appeal was bolstered by IGA’s planned refurbishment, with over $3.5 million in capital works expected to significantly increase foot traffic and enhance supermarket performance.
Mr Swan highlighted the site’s development potential as a key driver of investor interest. “With a balance land area of 4,046sqm, there’s an immediate opportunity to develop two vacant pad sites. Furthermore, there is potential to expand the main centre to accommodate an even larger full-line supermarket, presenting inherent value-add potential for the new owners,” he explained.
This sale reflects the resilience and attractiveness of the neighbourhood shopping centres located in high-growth regional areas, particularly those with a strong focus on non-discretionary and essential service retailers.
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