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News release

BRISBANE

Brisbane’s best performing Woolworths-anchored Neighbourhood Centre comes to market

MarketPlace Warner will be offered to the market via a formal Expressions of Interest campaign,


​MarketPlace Warner will be offered to the market via a formal Expressions of Interest campaign, closing 27 July 2017 with JLL Directors of Queensland Retail Investments Jacob Swan and Sam Hatcher exclusively appointed to market the property, on behalf of the private ownership group. 

MarketPlace Warner is a 'best in class' neighbourhood centre anchored by a dominant Woolworths supermarket and Aldi. The Woolworths supermarket is believed to be one of the best performing Woolworths supermarket's in Queensland by MAT, with turnover well above Urbis benchmarks for a double supermarket anchored shopping centre.

JLL's Jacob Swan said that neighbourhood shopping centres remained tightly held with only $347.6 million transacted this year, compared to a total of $1.6 billion in 2016.  

"Interestingly, of the 15 transactions that have occurred this year, nine have been in Queensland, highlighting investor confidence within Queensland's retail market," he said.  "Given the strong pent-up demand for prime neighbourhood centres coupled with the limited quality stock, we anticipate considerable domestic and offshore interest for this centre." 

Mr Swan said private investors, syndicators and funds management groups were still actively seeking to invest in neighbourhood shopping centres, with competition for quality centres remaining strong.

"The defensive nature of these non-discretionary-based assets continues to appeal to the market.

"The low-volatility of the spending profile within prime neighbourhood centres presents an ideal vehicle for capital preservation, while also providing a stable and attractive running yield," said Mr Swan.

MarketPlace Warner Shopping Centre was redeveloped in 2014 to include a newly refurbished Woolworths supermarket of 4,485sqm, a new Aldi supermarket of 1,553sqm and 37 specialties, providing a mix of non-discretionary, service and fresh/fast food uses with the town centre-style layout on a site area of approximately 6.5ha. 

The offering also includes a freestanding development pad site of 2,456sqm, freestanding Goodstart Early Learning Child care and an adjoining balance land component of 4,305sqm.  The centre provides a total combined GLA of 11,477sqm and over 500 at grade car parks.    

JLL's Sam Hatcher said there was significant growth to be had locally.

"We see growth in the retail spend and rental profile being realised through a large population of almost 70,000 in the Main Trade Area, projected to increase at 1.7% to 87,280 persons by 2036. In addition there are a total of 712 new dwellings under construction in the catchment/region, due to be completed in 2020.

"Total trade area retail expenditure is estimated at $905.5 million and is projected to grow to an impressive $2.3 billion by 2036, representing an average growth rate of 4.6%.

"The centre contains the largest supermarket in the Main Trade Area, allowing it to capitalise on the considerable forecast population growth and retail expenditure in the trade area.  There is no known planned completion within the Total Trade Area which would impact its future growth," said Mr Hatcher.

JLL - recent transaction evidence of QLD neighbourhood and sub-regional shopping centres:

 

Centre NameClassificationPurchase priceFully Leased Initial YieldSale dateVendorPurchaser
Highfields Village, QLD Neighbourhood $41,500,0006.10%Apr-17PrivateCharter Hall
Mudgeeraba Market, QLDNeighbourhood$35,800,0006.31%Apr-17PrivateSCA Property
Redbank Plains Town Square, QLDSub Regional$160,000,0006.29%Dec-16Alceon CaptransRockworth
Arana Hills Plaza, QLDSub Regional $67,100,0005.85%Dec-16ISPTCharter Hall