This article is from the Australian Property Journal archive
ASX-listed real estate investment trust Growthpoint Properties Australia has lobbed the recently refurbished Albany Creek Village to the market, the latest neighbourhood centre owners hoping to capitalise on favourable sentiment in the sub-sector.
Located at 700 Albany Creek Road, 15 kilometres north of Brisbane, the centre is anchored by a strong-performing Coles, which has recently undergone a major $7 million refurbishment along with an upgrade to its click-and-collect facility.
The centre has a national tenancy profile representing 61% of the total centre’s gross lettable area, including Coles, Liquorland, Priceline, Australia Post and Commonwealth Bank.
CBRE’s Joe Tynan and Michael Hedger together with JLL’s Jacob Swan and Ned McKendry are managing the sale via an expression of interest campaign, launching 18th March.
“Albany Creek Village presents an exceptional opportunity to acquire a high-performing neighbourhood shopping centre that would be defined as a true town centre and includes re-positioning opportunities in a prime metropolitan Brisbane location,” Tynan said.
Hedger said that given rising construction costs, existing retail assets that have undergone recent refurbishment are benefiting from the extreme constraint of new supply.
“With the added benefit of genuine income upside and a completed extensive refurbishment, Albany Creek Village is positioned for acquisition below replacement cost.”
Annual retail investment volumes totalled $6.2 billion, equivalent to 36% of total investment volumes, surpassing industrial (35%) and office (20%) volumes, for the first time since 2004, according to JLL. CBRE research tips investment volumes to grow by more than 50% between 2023 to 2025.
Swan said Albany Creek Village is an unrivalled opportunity for investors seeking a strong-performing, Coles-anchored neighbourhood shopping centre in a thriving retail market and offers potential for further growth and immediate development upside.
It has been a busy week for the neighbourhood shopping centre market, which has been favoured by investors in recent years for its defensive characteristics.
A Woolworths-anchored neighbourhood shopping centre north of Perth that was formerly a Bunnings Warehouse was offered to the market by supermarket giant’s construction arm this week, just as rival Coles listed the 2021-completed Andergrove Village Shopping Centre in Queensland’s Mackay for sale
Coles Group has also just offloaded Huntlee Shopping Centre in the Hunter Region of NSW for $33 million to a Sydney-based private investor, and closed 2023 with the divestment of Flagstone Village neighbourhood shopping centre in south east Queensland for more than $26 million to a high-net-worth private investor.
