Over $10m sale of essential service asset shows demand is still strong for premium investments13 February 2024
The $10,628,000 sale of a low maintenance freehold retail and medical premium investment on a 6,600 sqm site in Springfield, shows demand for these assets is still strong.
With strong engagement from private, offshore and institutional groups, an interstate private investor was ultimately the successful purchaser.
This premium investment anchored by national tenants was transacted on behalf of a local private investor by Colliers Queensland agents Hunter Higgins and Sam Polichronis.
Located in the fastest growing region in Australia and offering a reliable income source, 22 Commercial Drive Springfield offered a secure and diverse investment opportunity.
Colliers Queensland National Director Investment Services Hunter Higgins said this freehold retail and medical complex was located in an established business precinct that was 82 per cent listed to national tenants such as Tradelink, Bridgestone and Vinnies, as well as Steller Medical.
“Underpinned by a strong WALE of 4.9 years, there was no shortage of security and diversity in this investment, hence we saw a lot of market interest,” Hunter Higgins said.
“Metro convenience retail centres underpinned by long WALE and national covenants remain highly sought after by local and interstate private investors.
“This is a low maintenance investment with only 4 tenants and over 80 per cent of the income underpinned by national tenants,” Hunter Higgins added.
Colliers Queensland Executive Investment Services Sam Polichronis said strategically located in Brisbane’s booming southwest growth corridor, 23 kilometres by road southwest of the Brisbane CBD this was a great opportunity.
“A rare combination of premium covenants in one of Queensland’s fastest developing growth corridors offered a great opportunity for investors,” Sam Polichronis said.
“The 6,600 sqm site is primely situated in the commercial hub of Springfield, neighbouring major master planned developments offering stable future growth.
“The property is positioned off the Centenary Highway within the retail precinct of Springfield, walking distance from Springfield Fair Shopping Centre, Hungry Jacks, McDonald’s, Reece Plumbing, Springfield Tavern, Coles and 7-Eleven.
“The asset is further strengthened by its locality to Springfield Train Station and Woodcrest State College.
“The growth of Springfield is underpinned by one of Australia’s largest master planned community developments.
“Spearheading the development are powerhouses such as Springfield City Group, Sekisui House, Lend Lease and Mirvac, providing over 2,800 hectares of planned communities,” Sam Polichronis added.
Colliers Queensland National Director Investment Services Hunter Higgins said essential service sectors played a crucial role in daily life and were more resilient to economic conditions, making them a less risky investment with a reliable income source and capital growth potential, making them a popular choice among investors.
“The rise in demand for essential services in recent years, which has contributed to the expansion of premium investment sectors will continue due to their better resilience to economic conditions,” Hunter Higgins added.
“Research conducted by Colliers Queensland shows that due to dependence on everyday necessities the essential service sector is expected to remain stable.”