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News release

Australia

Demand for neighbourhood shopping centres on the rise and rise

AUD 52.8 million in sales for four centres across Australia kick starts 2015


​​AUSTRALIA, 22 JANUARY 2015 – Demand for neighbourhood shopping centres continues to grow throughout Australia’s east coast, evidenced by the recent negotiations of JLL’s Jacob Swan and Sam Hatcher in selling four shopping centres across Queensland and New South Wales for a total sale value of $52.8 million.

Neighbourhood shopping centres were transacted in Beaudesert, Airlie Beach and Townsville Queensland and in Parkes in NSW. 

Beaudesert, Queensland: Sold by BNY Trust Company of Australia Limited to Allo Pty Ltd for $18.5 million, Beaudesert Fair Shopping Centre in Queensland boasts a site area of 19,960 sqm and comprises a 7,290 sqm GLA retail asset securely anchored by a 4,421 sqm Coles Supermarket. Strategically located in the regional hub of Beaudesert, approximately 65 kilometres south of the Brisbane CBD and approximately 72 kilometres west of the Gold Coast, the centre’s positioning on the corner of William Street and Anna Street provides dual access, excellent exposure from passing traffic, and puts it close to the central business district.

The centre has a net passing income of $1,396,255 pa as at December 2014 and a net passing initial yield of 7.54%.

Airlie Beach, Queensland: Sold for $13.1 million to a private investor, Woolworths Airlie Beach in Queensland, previously owned by Fabcot Pty Ltd, has a site area of 12,820 sqm and comprises 2,929 sqm in GLA and a brand new freestanding supermarket. Enjoying a high profile location within the Airlie Beach Town Centre, the site boasts dual access points, and the potential for future expansion with indicative plans for an additional 360 sqm of supermarket space and 960 sqm of specialty stores.

The property is securely leased to Woolworths on a 20 year term with eight additional five year options, initially expiring in June 2034, and has a net income of $910,830 pa as at September 2014, and an initial yield of 6.95%.

Parkes, New South Wales: Located in the heart of the Parkes CBD in New South Wales, Parkes Shopping Centre has been sold for $10.2 million by APN Regional Property to Fund to Spinks & Co. Pty Ltd. The sub-regional shopping complex has a site area of 11,905 sqm and a GLA of 7,935 sqm, and is anchored by a Coles Supermarket, Target Discount Department Store and GO-LO/Millers. It has a net passing income of $1,083,570 pa as at January 2014 and a net passing initial yield of 10.62%.

Woodlands Village, Deeragun (Townsville), Queensland: Sold for $11million to Sentinel Countrywide Retail Trust, the Woodlands Village features a Woolworths anchored neighbourhood shopping centre, on the north western fringe of Townsville, some 15km from the CBD. The site sits over a 19,600sqm high profile site with over 250m of frontage to the Bruce Highway which provides the centre with exceptional levels of exposure. There are three freestanding buildings providing 4,474sqm of retail space. 

JLL’s Director of Retail Investments for Queensland, Mr Jacob Swan, said the year would remain competitive in this sector. 

“As the weight of capital seeking exposure to retail assets continues to expand via ongoing demand from offshore investors and from domestic institutions, market conditions are likely to remain competitive through 2015,” he said. 

“In 2014 Queensland had another highly active year in terms of the volume of transactions. Unlisted funds, REITs and syndicates were the key buyers of assets in Queensland over the year.” 

Mr Swan’s fellow Director of Retail Investments for Queensland, Mr Sam Hatcher said, “Retail yields compressed sharply during 2014, driven by stronger competition for assets, improvement in risk appetite and a further reduction in the cost of capital. 

“The tightening was evident on a broad-based basis across all retail sub-sectors and across the risk spectrum,” he said.