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Secure lease covenants and expansion potential appeal in suburban retail centre sale: Jones Lang LaSalle
BRISBANE, 6 August 2013 – A convenience retail shopping centre in Brisbane’s northern lying Caboolture shire has sold for $8,000,000 to a Private Investment Syndicate in a deal negotiated by Jones Lang LaSalle’s Jacob Swan and Sam Hatcher.
Sold on behalf of owner POD Developments Pty Ltd, Jones Lang LaSalle’s Sam Hatcher said it was a strong result.
“We received excellent interest from local and interstate investors and syndicators, attracted to the security of income, given 80 per cent of the income for the centre is generated by three large and secure tenants,” he said.
“At the close of the Expressions of Interest campaign we had five strong offers and promptly agreed terms.”
The Village Shopping Centre, at 204-208 Bestmann Road at Sandstone Point is home to an IGA supermarket, seven retail tenancies with a gross lettable area of some 2,287sqm. The centre is located between the Pebble Beach recreation reserve and the Pebble Beach retirement community village.
“Importantly for the area, the centre also features 158 at grade car-parks, a medical centre, pharmacy, newsagency, hair salon and other services extremely well suited to the demographic of the area,” said Jones Lang LaSalle’s Sam Hatcher.
“A strong attraction to the offering was the secure lease covenants with a mix of national and local retailers. The centre is anchored by Cornett’s IGA with 52 per cent of the NLA, as well as ALH Group Limited with 10 per cent and the Pebble Beach Medical and Pharmacy with 18 per cent. This mix provides a strong WALE (weighted average lease expiry) of 9+ years which appealed to the buyer,” said Mr Hatcher.
In addition, the centre offers excellent car parking, a ratio of 1 bay per 14sqm of NLA.
Mr Hatcher said that given the buyer was an investment syndicate, the future expansion potential of some additional 500sqm of NLA provided a strong long term development upside and source for income growth.
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