This article is from the Australian Property Journal archive
THE Noosa Outlook Shopping Centre on Queensland’s Sunshine Coast has been picked up by a Tasmanian buyer for $10.95 million, with the 4.99% yield believed to be a record for an IGA-anchored neighbourhood shopping centre.
There were 170 enquiries made from buyers in Australia, Asia and South Africa, according to selling agents Colliers’ Nick Dowling and Chris Maher and Your Commercial’s Chris McLeod and Damon Lewis. Twelve offers were made with four parties coming in on a sub-5% yield.
The shopping centre last changed hands in 2015, when it sold at auction for $6 million.
The fully-leased and recently refurbished freestanding Noosa Outlook occupies a 7,600 sqm site in Tewantin. It is anchored by an IGA on a brand new 10-year lease to 2031 with options and has a weighted average lease expiry of 5.5 years.
“We were fortunate to have so much genuine interest from buyers located interstate, particularly Melbourne and Sydney based investors. In the end, it was the Tasmanian based fund, GDA Diversified Property Trust who purchased, leaving many of the local buyers disappointed”, Lewis said.
Dowling said the purchaser was to commit on an unconditional.
“Noosa Outlook is one of the very few recent QLD retail investments offered to the market in the $10 million price range,” he said.
Noosa Outlook is also the only non-metropolitan neighbourhood shopping centre taken to market publicly in 2021, year to date, and no other non-metropolitan neighbourhood shopping centre asset has yet transacted this year below 5.00%, regardless of price point or supermarket covenant.
Non-discretionary retail assets, particularly those with strong essential service supermarket covenants, are in strong demand due to their resilient income streams.
“We are experiencing unprecedented demand from investors, both local and interstate seeking to deploy capital into ‘pandemic-proof’ assets such as a non-discretionary based neighbourhood centre, anchored by a national supermarket,” Maher said.
The highest level of investment activity in 2020 was recorded in the neighbourhood centre sub-sector whereby, nationally, 41 neighbourhood centres were transacted for a combined value of $1.65 billion. Australia’s retail market activity has been dominated this year by neighbourhood shopping centres, convenience retail and large format centres.
Colliers agents Chris Maher and Tom O’Driscoll are currently marketing Oxley Village with expressions of interest 20th October.
