This article is from the Australian Property Journal archive
GORDON Corporation is about to tip three high-performing convenience and large format retail centres in south east Queensland to the market, including two assets picked up in the wake of Kaufland’s shock exit from the Australian market.
Burleigh Home + Life, Morayfield Village and Yamanto Village have been listed for sale and are expected to draw interest from private and institutional capital both individually or in one line.
The Burleigh and Morayfield sites were part of a portfolio of nine assets in Victoria, Queensland and South Australia put to the market in 2020 after German hypermarket Kaufland pulled the plug on its operations down under without ever opening a store. Gordon Corporation paid about $30 million for the two Queensland properties.
A brand-new large format retail centre, Burleigh Home + Life occupies a strategic 3.29-hectare site on the Gold Coast, with the 11,656 sqm centre anchored by Anaconda, Adairs, Autobarn and Beacon, along with a mix of health and medical services and food and beverage operators.
Morayfield Village occupies a 1.7-hectare corner parcel adjoining Morayfield Shopping Centre, 40 kilometres north of the Brisbane CBD, with the 6,916 sqm centre having a complementary tenancy mix of large format retail, food and medical retailers.
The third asset, Yamanto Village, is a fully leased convenience centre located on Warwick Road, in a growth corridor five kilometres south of Ipswich. Over 70% of gross income secured by national and brand covenants, with fixed annual reviews and favourable net leases.
Colliers’ James Wilson and Steven King have been appointed, in conjunction with the JLL team of Jacob Swan, Sam Hatcher and Ned McKendry, to sell the trio of sites on behalf of Gordon Corporation.
The assets offer cash flow security via long weighted average lease expiries and strong weighting of income underpinned by national covenants, combined with their strategic south east Queensland locations in some of Australia’s fastest-growing catchments.
“The strong depth of private and institutional capital targeting convenience and large format retail centres has continued into 2022,” Wilson said.
Swan said, “Last year saw unprecedented demand for assets that were designed for absolute convenience. Burleigh Home + Life, Morayfield Village and Yamanto Village are all efficiently designed at-grade to maximise trading exposure. Offering ample car parking, the assets were constructed for ultimate consumer accessibility with a focus on essential service retail – these are the characteristics that will continue to attract the most aggressive capital”.
The expressions of interest campaign on all three assets closes on 7th April.
Charter Hall has just forked out more than $65 million for a near new Bunnings Warehouse on the NSW South Coast, while Sandran Property Group has just bought a large format complex home to the Northern Territory’s only Officeworks for $13 million, and investors paid more than $21 million for three National Tiles outlets in Victoria at a recent property portfolio auction.
