This article is from the Australian Property Journal archive
A FIRST-time real estate investor has snapped up the future site of the Googong Convenience Centre on the ACT/NSW border in a $28.5 million deal.
Once complete, the site will consist of a McDonald’s, KFC, 7-Eleven, Aspire Early Learning and The Reject Shop, on a strategic 1.18-hectare site which forms part of the future Googong Central Town Centre, south of Queanbeyan.
Colliers’ James Wilson, Ben Wilkinson and Matthew Winter managed the deal on behalf of Stevens Group.
They said the purchased was attracted to the significant stamp duty savings and tax efficiencies the centre provided due to the fund-through structure.
The campaign attracted over 150 campaign enquiries which resulted in a core market cap of 5.76% and a gross lettable area rate of $10,164 per sqm.
“This transaction highlights the renewed demand for fund-through transactions secured by national tenants on long leases from top tier developers, offering significant acquisition benefits including depreciation,” Wilson said.
“With limited new developments being delivered and greater clarity surrounding debt markets in late 2024, sophisticated investors continue to bid aggressively for core non-discretionary retail product, driving strong results.”
As well as the Googong Central Town Centre, the convenience centre is near the proposed NSW Fire and Rescue, the Googong Hotel and the future Googong High School.
Following several years of subdued activity, the retail sector bounced back throughout last year to finish 2024 with $8.4 billion worth of deals, according to JLL.
The tally, across 116 transactions, was the fourth-largest year on record since 2010, and was 14% higher than the three-year average and 17% above the 15-year average.
