This article is from the Australian Property Journal archive
PERTH-based property syndicator Kerching Capital has netted $12.6 million from the sale of Sandstone Point Village neighbourhood centre in Brisbane’s north.
A private investor emerged successful out of eight bids put forward. The property traded on an initial yield of circa 6.5%.
CBRE’s Michael Hedger and Joe Tynan negotiated the sale following a competitive expressions of interest campaign.
”In the current environment of low cash returns and cheap lending, we’re fielding strong interest in securely leased retail assets, however few quality properties are coming to market,” Tynan said.
Sandstone Point is situated in the Moreton Bay region, about two kilometres south of Bribie Island and 42 kilometres north east of the Brisbane CBD.
Kerching Capital acquired the asset in 2016 for $10.4 million.
The property has a gross lettable area of 2,289 sqm and is anchored by a strongly-trading IGA supermarket, medical centre and pharmacy, which account for 65% of the income.
It also comprises seven specialty stores, including BWS, dentist, pharmacy and medical centre, for a weighted average lease expiry of 5.8 years.
Hedger said strong demand continues to be seen for well-located neighbourhood shopping centres, particularly those that have traded well through the COVID period.
“Centres that offer a long WALE and demonstrate resilient income profiles are transacting at a premium.”
Kerching Capital acquired the Ferny Grove Village shopping centre two years ago for $16.2 million. The neighbourhood shopping centre in Brisbane’s north west is anchored by a Coles supermarket and has 19 specialty retailers.
