Family development group Horwell Property Investments has purchased Westpoint Shopping Centre in Browns Plains for $46,500,000.
The fully leased 5,978sqm neighbourhood shopping centre is secured by a long-term, 20-year lease to Woolworths supermarket and supported by national and chain specialty tenants, representing 73% of the gross income.
CBRE’s Joe Tynan and Michael Hedger brokered the deal achieving a yield of 5.44%.
The success of the transaction comes off the significant amount of private investor interest generated from recent campaigns such as Rochedale Village and the Zone Underwood.
The asset attracted interest from onshore and offshore investors during the Expressions of Interest campaign.
“The growth characteristics displayed by the centre resulted in a strong yield despite the current state of the retail investment market which has seen a marginal softening due to the increasing cost of capital, following the RBA’s gradual increases to the cash rate since May 2022,” Mr Hedger said.
Located 21km south of the Brisbane CBD, Westpoint Shopping Centre is in a prominent retail hub that services both the Brisbane and Logan LGA’s. The catchment within a 5km radius of the centre is expected to increase by 12.7% across a 10-year period to 2032.
Mr Tynan added, “The high-performing Woolworths is extremely close to achieving turnover rent, with the property also offering significant development upside given the low site coverage and there is already a DA approved for a 432sqm proposed tenancy. This was a draw card for prospective purchasers, with growth prospects at the forefront of investment decisions.”
“The projected population growth in the catchment, as well as the centres fully-leased tenancy profile, long history of tenant retention and 6.5-year WALE were also critical to the appeal of Westpoint, providing a secure income profile.”