This article is from the Australian Property Journal archive
A BRAND new, multi-tenanted large format retail centre in City of Redland’s coastal suburb of Cleveland has sold to an interstate investor for $10,650,000.
Located at 47 Shore Street West, the asset was completed last year and comprises a 2,018 sqm building on a site of 4,617 sqm. It traded fully leased with a return of $591,426 per annum from a mix of national and international tenants, including mycar, The Salvation Army, and Lifeline.
The sale price showed a yield of 5.55%.
Burgess Rawson facilitated the sale through an expressions of interest campaign led by Yosh Mendis, Josh Scapolan and Andrew Havig on behalf of Loney Bell Capital.
Mendis said the property’s appeal was underpinned by long-term lease security of up to 10 years plus options, landlord-favourable terms, and fixed rental growth of 3.5% per annum.
“The property saw strong interest and competition from investors across Australia eventually selling to an interstate investor looking to diversify their existing investment portfolio.”
He said the transaction underscores the increasing demand for high-quality large format retail investments in prime metropolitan locations.
“Assets of this calibre underpinned by strong underlying land value, high replacement cost fundamentals, strong depreciation benefits and long-term lease security, continue to generate strong interest from investors nationally looking for stability and growth.”
The property benefits from a prime main road position with 80 metres of frontage to Shore Street West, Cleveland’s main road which carries 193,000 vehicles each week.
