This article is from the Australian Property Journal archive
DEXUS Wholesale Property Fund has listed the convenience focused Beenleigh Marketplace shopping centre in Brisbane for sale, as retail investors look for low-risk assets.
Anchored by Woolworths and Big W, the 19,476 sqm centre has 75% of its gross lettable area leased to national and chain retailers.
Total centre moving annual turnover of $113.7 million and its specialty productivity of $9,548 per sqm both outperform national averages.
Beenleigh Marketplace occupies a 60,680 sqm site, 32 kilometres from the Brisbane CBD. The landholding includes 4,390 sqm of adjoining land that has been earmarked for further development, offering further value-add potential.
Population growth around the centre, is expected to grow from the current 83,750 by 2.1% per annum to 2031, above the Australian average of 1.4% per annum.
Marketing agent Simon Rooney, JLL’s head of retail investments, Simon Rooney said investors are pursuing a low-risk retail strategy at present.
“As a result, high-quality convenience-based sub-regional centres remain favourable investments and have been actively acquired,” he said.
“Investors are targeting small and mid-sized sub-regional centres with a major focus on retail services as well as food and beverage. F&B has consistently been the fastest growing retail category over the last five, 10 and 20 years, which underpins solid leasing demand.
“Buyers see relative value in retail assets given the widening spread to other asset classes and attractive income returns available for quality sub-regional centres. Investors are opportunistically making tactical retail acquisitions to take advantage of the pricing disparity between sectors and individual assets.”
Transaction activity in the $50 million to $150 million bracket grew by 74% in 2018, according to JLL, having increased 47% the previous year.
Recent similar transactions Charter Hall’s $142 million purchase of Rockdale Plaza and $74 million acquisition of Campbellfield Plaza; Neeta City, bought by Elanor Investors for $85.3 million; and Keilor Central in Melbourne, bought by Fort Street for $113 million.
Australian Property Journal
