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News release


Absolute Prime, brand new Coles anchored neighbourhood centre comes to market

Neighbourhood shopping centres remain tightly held asset

Benowa Village Shopping Centre, Gold Coast will be offered to the market via a formal Expressions of Interest campaign, closing 5 October, with JLL Directors of Retail Investments Jacob Swan and Sam Hatcher exclusively appointed to market the property, on behalf of Coles Supermarkets Australia. 

Benowa Village is a 'best in class' neighbourhood centre anchored by a dominant Coles supermarket. The fully leased centre was built brand new in 2016, with the Coles supermarket further complimented by a freestanding McDonalds drive through, Coles Express service station and 13 fully leased specialty tenancies.

JLL's Jacob Swan said that neighbourhood shopping centres remained tightly held with only 28 transactions recorded nationally in 2017 to-date (totaling $893 million), compared with 65 in 2016 ($1.6 billion).  

"Queensland has had a disproportionately high level of activity relative to the other states. Interestingly, of the 28 neighbourhood shopping centre transactions that have occurred this year, 14 have been in Queensland compared with only nine in Sydney and just four in Melbourne, highlighting investor confidence within Queensland's retail market," he said.  "Given the shortage of available investment opportunities in New South Wales and Victoria, interest in Queensland assets has grown significantly. There is strong pent-up demand for prime neighbourhood centres so we anticipate considerable domestic and offshore interest for this centre." 

He 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."

Benowa Village was built brand new in 2016 and features a state of the art Coles supermarket (including Liquorland) of 4,396sqm. In addition to McDonalds and Coles Express, the specialty offering provides a mix of non-discretionary, service and fresh/takeaway food uses with an effective and efficient design on a site area of approximately 2.82ha. 

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 41,000 in the Main Trade Area, projected to grow strongly at 1.5% to just under 50,000 persons by 2030."  

"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.  The Gold Coast has traditionally had an undersupply of full line supermarkets; as prime development sites have been absorbed by high density residential developments. This further highlights the dominant outlook for Benowa Village."