This article is from the Australian Property Journal archive
GREENPOOL Capital and Qualitas have jointly acquired a 50% stake in a Gold Coast based sub regional shopping centre for $128 million on a 6.5% fully leased yield.
Runaway Bay Shopping Centre spans 42,862sqm, boasts a diverse tenancy mix, with a focus on in demand convenience retail offerings and recently underwent a $13 million refurbishment and reconfiguration.
Simon Rooney, head of retail capital markets at CBRE, Pacific negotiated the off-market sale on behalf of Perron Group.
“Runaway Bay is an established, highly productive sub regional centre and a solid tenancy base, with major, national and chain tenants comprising 88% of the total GLA,” said Rooney.
The centre is anchored by Woolworth, Coles and Aldi supermarkets, as well as a Big W and Target.
Specialty tenant productivity at the centre was also reported as 31% higher than the Urbis benchmark. While the $901 million MTA accounts for 55% of all retail spending and is expected to increase by 2.9% from $4.1 billion to $5.5 billion by 2031.
This high performance is underpinned by its established and densely populated catchment area of nearly 240,000 residents.
With the centre sitting on an underutilised 124,700sqm site the acquisition also represents significant potential for mixed-used development opportunities.
The acquisition follows the 2016 established Greenpool Capital and Qaulitas $50 million acquisition of North Adelaide Village from the Makris Group.
“Joint venture opportunities with major institutional owners and managers are now also being actively pursued, particularly those offering future development upside,” said Rooney.
Rooney highlighted the Runaway Bay sale as another demonstration of increasing demand for sub regional shopping centre investments, including $1 billion in pending major retail transactions in South East Queensland across sub regional and larger regional centres.
“There has been particularly strong sub regional centre investment activity in Queensland of late, including the recent sales of the Mount Pleasant Centre in Mackay to Fawkner Property and Stockland Bundaberg to MA Financial for a combined total of $302 million,” added Rooney.
