This article is from the Australian Property Journal archive
SYDNEY-based boutique fund manager Horizon Capital Management has sold the Vincent Market Place in Townsville to a private investor for $16.7 million.
The off-market deal was brokered by Savills Peter Tyson. The sale price reflects a tight passing yield close to 6%.
The 4,956 sqm centre is anchored by a strongly trading 3,069 sqm Woolworths supermarket along with 14 specialty shops and three ATMs with grade level parking for 200 cars – set on a site of 1.5ha.
“We have seen increasing interest in shopping centres in regional Queensland due to the inability of buyers to secure opportunities in metropolitan locations.
“Competition amongst buyers for investment grade retail assets is as strong as we have ever seen. The Coles and Woolworths covenants continue to be amongst the most sought after in the market,” Tyson said.
“The tight yield result in this deal follows the trend of the wider market. The last 24 months have seen enormous yield compression in all sectors, the key driver of which is today’s historically low interest rates.
Notwithstanding the yield compression we have already seen, the depth of buyer competition and low cost of debt are likely to see it continue,” Tyson concluded.
Australian Property Journal