This article is from the Australian Property Journal archive
GORDON Corporation has netted $72.5 million from the sale of a repositioned Gold Coast large format retail centre that it picked up in the wake of Kaufland’s shock exit from the Australian market.
The Burleigh Home + Life centre in Burleigh Heads was one of three centres the developer put to the market in March, including Morayfield Village and Yamanto Village. 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. It has repositioned Burleigh Home + Life, into a large format centre anchored by retailers Anaconda, Autobarn, Beacon Lighting, RSEA Safety and Choice the Discount Store.
Burleigh Home + Life has a building area of 11,656sqm and is on 3.285 hectares of land next to the Stockland Burleigh Heads shopping centre.
A private Gold Coast family fended off competition from national investors and institutional players to snare the asset.
According to selling agents Steven King and James Wilson of Colliers and JLL’s Jacob Swan, Sam Hatcher and Ned McKendry, the deal represents the highest price paid for a large-format retail centre in Queensland in more than three years.
It represented a capitalisation rate of 4.68%, with the property delivering a net annual income of approximately $3.39 million fully leased and a weighted average lease expiry of 8.3 years.
“It is incredibly exciting that a local family was able to fend off institutional capital after having been pipped on several occasions on similar offerings,” King said.
Wilson said the campaign highlighted the strong depth of market for high-quality large format retail centres, with over $500 million in value of offers received from private and institutional investors.
Swan said the centre is supported by an effective tenancy mix comprising non-discretionary retail, medical services and food and beverage facilities.
“It ticks the boxes in terms of internal investment parameters for many private and institutional investors who are looking to secure premium commercial assets in the Gold Coast market.
“Convenience-based assets offer resilient income streams and a non-discretionary tenancy base, providing investors with confidence despite inflationary economic conditions. It is these assets that will continue to outperform throughout 2022.”
Charter Hall earlier this year forked out $65.3 million for a near-new Bunnings warehouse on the New South Wales South Coast, at a tight yield of 4.0%.
Gordon Corp, headed by Tim Gordon has a portfolio of commercial, residential and mixed-use developments nationally. Just over a year ago it won the bidding process for a development site at The Spit, where it will deliver a $93.6 million luxury apartment development, the Village Centre South project.
