This article is from the Australian Property Journal archive
A PRIVATE Gold Coast family has acquired the Wondall Road Village convenience centre in Brisbane’s east for $16 million, setting a new yield benchmark of 6.08%.
CBRE’s Michael Hedger and Joe Tynan sold the centre on behalf of a local Brisbane syndicate Lomin Holdings.
“The yield achieved is the strongest that we have seen for an IGA-anchored asset in Queensland,” Hedger said.
“We continue to see new sources of capital entering the market that are prepared to pay a premium to secure retail assets that offer strong investment fundamentals. Premium retail investments in Brisbane are rarely offered to the market and given the strength of the property’s location, tenant covenant and income security, Wondall Road Village appealed to a wide range of investor groups, both locally and offshore,” he added.
Located 15km east of Brisbane’s CBD, the 1,873 sqm convenience centre incorporates an IGA supermarket, a BP service station and a five-bay car wash, in addition to eight specialty stores, comprised mainly of food & beverage and medical retailers.
The total site area is 9,712sqm.
Tynan said the sale campaign had represented the first opportunity to buy the property since its development.
“Strong local, interstate and offshore enquiry was received from private high net worth individuals and syndicators,” Tynan said. “We received a total of 72 enquires, with six formal positions put forward that were all very competitive.”
Tynan said the result followed a series of strong sales transactions underpinned by IGA lease covenants.
“This transaction, following the recent CBRE sales of IGA Yarrabilba on a 6.5% yield and Emu Park Village on a 6.91% yield, demonstrates the confidence the market holds for IGA assets,” Tynan said.
Australian Property Journal
