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News release

QUEENSLAND

2016 begins strongly for retail investment with Pimpama Junction brought to the market


​Strongly performing neighbourhood shopping centre Pimpama Junction in the Brisbane-Gold Coast growth corridor will be offered to the market via a formal expressions of interest campaign, closing 17 March 2016. JLL Directors of Queensland Retail Investments Jacob Swan and Sam Hatcher have been exclusively appointed to market the property on behalf of Sydney-based Tipalea Partners.

Mr Swan said 2015 was a record year for the Queensland retail investment market with transaction activity reaching levels not seen before, new benchmarks set for yields and pricing being consistently achieved.

"This record demand has been largely driven by considerable investment in prime neighbourhood centres, such as Pimpama Junction, with total sale volumes across Australia of $1.9 billion for this retail sub-sector alone," he said.

"Pimpama Junction is an outstanding example of a prime neighbourhood centre with long income security to a dominant Woolworths Supermarket through a 20 year lease with three (3) 10 year options. The supermarket anchor is supported by a high performing food and beverage and health and medical services precinct." ​

He said neighbourhood centres have experienced strong investor interest in South East Queensland (SEQ) due to their accessibility to an active private investor and institutional market driven to the attractive yields and lower exposure to discretionary retail spend.

"As a result, average yields have sharpened significantly over the past 12 months," he said.

"Buyers are clearly taking a long-term view on the Queensland economy, as reflected in the very high levels of investment activity. As a result of strong competition and yield compression in New South Wales and Victoria, buyers have sought assets in Queensland as a more opportunistic long-term strategy with the State registering a disproportionately high level of investment activity relative to its market size."

Pimpama Junction is a brand new 5,441sqm* Woolworths anchored neighbourhood centre supported by 17 specialty retail tenants, four (4) medical and health occupiers, three (3) ATMs and one (1) kiosk. The centre occupies a high profile 2.1ha* site with 300 car parks provided at-grade. ​

"The Woolworths is the only full-line supermarket within the trade area and the centre provides expansion potential for the supermarket, allowing it to capitalise on the considerable forecast population growth in the trade area. This will further solidify Pimpama Junction's positon as the dominant centre within the local retail hierarchy," said Mr Swan.

Tipalea Partners CEO Mr Scott Spanton said the residential growth in the Pimpama / Coomera area was staggering. "I personally have never seen this many houses coming out of the ground so quickly," he said. "This is reflected in the turnover growth that Woolworths are achieving with consistent 20% plus growth month-on-month relative to last year," he said.

The centre serves a significant trade area with the main trade area population estimated at approximately 10,330 in 2015, including 3,620 and 6,710 residents in the primary trade area and secondary trade area respectively. The main trade area population is projected to reach over 31,880 by 2026, including over 19,100 residents in the primary trade area, equating to an annual growth of 10.8% and 16.3%, respectively.