This article is from the Australian Property Journal archive
THE brand new fully-leased IGA-anchored Dockside Village in Pelican Waters has sold to a local private investor for more than $13 million.
The 1,578sqm shopping centre at 1 The Basin adjoins Pelican Waters Marina in new residential development area on the Sunshine Coast, with tenants including IGA Supermarket, Cellarbrations, and Sushi Ari.
Nick Wedge, Sam Polichronis, Harry Dever and Nick Dowling from Colliers Queensland managed the sale via an off-market process targeting 10 high net worth private investors, on behalf of the vendor Flux Property Group.
“We saw a high level of engagement, with the successful purchaser being a local private Asian investor who was looking for a defensive asset with future potential,” said Wedge, director of investment services at Colliers Queensland.
“With 95 per cent of income from the asset anchored by National tenants and a 15-year lease with IGA with options until 2049 securing 80 per cent of the centre’s gross rental income, this was a solid investment.”
The property sold for $13,459,805 at a 5.66% yield, representing the sharpest yield achieved for a IGA-anchored centre in Queensland over the last 12 months and for an IGA anchored centre on the Sunshine Coast for the last 24 months.
“Featuring only three tenants, offering a minimal management proposition with 47 car park spaces and excellently positioned alongside the adjoining Pelican Waters Marina, it was a great offering,” said Dowling, managing director of Colliers Sunshine Coast.
Additionally, the asset boasts a WALE of 14.12-years by area, with a 100% occupancy.
“Despite record-high debt costs, these tightly held neighbourhood centres continue to transact well below the cost of debt, highlighting the resilient nature of these non-discretionary-based assets,” said Dever, associate director of retail middle markets at Colliers Queensland.
“Private investors are increasingly adopting a long-term generational approach, particularly with new neighbourhood centres, those that characterise strong retail spending and population growth.”
While another Vicinity co-owned asset recently changed hands in Tasmania’s largest-ever single-asset retail sale, with Challenger Group continuing its selldown with the $82.5 million divestment of Channel Court.
With another IGA-anchored centre trading this week, with Maker Invest purchasing the East Brisbane Marketplace neighbourhood shopping centre for $16.25 million.
Dockside Village is located in the centre of the 810-hectare Pelican Waters masterplanned community, and was purpose built to service this growing catchment.
“These transactions demonstrate significant investor demand for strong performing assets on the Sunshine Coast,” added Dowling.
“Assets that offer essential services are more resilient to economic conditions, making them a less risky investment with a reliable income source and capital growth potential, making them a popular choice among investors,” added Polichronis, executive of investment services at Colliers Queensland.
“Pelican Waters median house price has risen 80 per cent since March 2019 from $750,000 to $1,350,00 in February 2024, this is a high growth area that will benefit greatly from this new essential service.”
