This article is from the Australian Property Journal archive
Fund manager ISPT has offloaded a Brisbane shopping centre for almost $40 million and at the same time is selling Brighton Village in Perth, the first Coles-anchored offering in the city this year, Australian Property Journal can reveal.
The ISPT Retail Australia Property Trust has sold Bracken Ridge Plaza in Brisbane’s north for $39.388 million to BRP Qld Property, in an off-market transaction managed by JLL’s Stuart Taylor, Jacob Swan, Ned McKendry and Will Morris.
The centre was transacted on an initial passing yield of 5.51% and fully leased yield of 5.79%, highlighting the availability of capital looking for a home within neighbourhood assets.
The sale price represents a building rate of $6,455 per sqm. Bracken Ridge Plaza comprises a GLA of 6,101 sqm and occupies a large land area of 23,843 sqm.
The sale is the first neighbourhood shopping centre sale in Brisbane for the year after the $19.5 million sale of Ferny Grove Shopping Village and the Woolworths Coomera East $24 million transaction in the final quarter of last year.
Bracken Ridge Plaza is located approximately 18km north of the Brisbane CBD. Built in 1994, the centre comprises GLA of 6,059 sqm and is anchored by a Coles supermarket as well as 24 specialty stores.
ISPT has owned Bracken Ridge Plaza for almost a decade after acquiring the centre in 2015 for around $29 million from Terry Herbert & David Dodd. Prior to that, Herbert and Dodd bought the centre from Brookfield Multiplex for $20.5 million in 2009.
At the time, the acquisition was part of ISPT’s push into neighbourhood shopping centres, however the fund is now looking to recycle capital from its investments, which is why this week ISPT put Brighton Village on the market.
Located in Perth’s rapidly expanding northern corridor, the centre is expected to attract a mix of cashed up private investors, family offices, syndicators, domestic and offshore players.
Colliers head of retail middle markets Australia James Wilson and Western Australia state chief executive Richard Cash are handling the Brighton Village campaign.
Although the agents declined to comment, industry sources indicated the property will fetch in excess of $20 million.
According to the agents, neighbourhood shopping centres offerings are rare for WA market, with only two transactions typically occurring each year.
According to Colliers, some $1.8 billion worth of retail properties were transacted in WA in 2024 but only $150 million were neighbourhood shopping centres, highlighting the scarcity.
“With the centre being fully leased and anchored to Coles which accounts for 73% of GLA and 78% of Income, Brighton Village stands out as a high-profile investment. The centre offers secure income growth and minimal management, making it an attractive addition for private investors and funds,” said Wilson said.
Situated at 6 Kingsbridge Boulevard, Butler, Western Australia, 41km north of Perth, Brighton Village is a modern, 3,831 sqm single-level centre anchored by Coles along with six specialty tenants, as well as on-grade car park for 200 vehicles.
Brighton Village
The centre is held by the ISPT Retail Australia Property Trust which bought the property in 2013 as part of a 19 properties portfolio for $400 million.
Cash said neighbourhood centres are a tightly held asset class and becoming a rarity due to increasing construction costs becoming a major hurdle for new developments.
“As a result, neighbourhood centres turnover continues to increase as there’s less competition,”
He added that Brighton Village presents an exceptional opportunity due to the significant infrastructure spend in the area.
“The Yanchep Rail Extension, which includes new train stations at Alkimos, Eglinton, and Yanchep, has fuelled growth in Perth’s North West Corridor. This improved connectivity not only supports the expansion of the suburbs but also reduces commute times to just 41 minutes. As a result, more residents are drawn to the area, leading to a population boom in Butler. This thriving community offers a prime location for investors looking to capitalise on the area’s continuous growth and development,” said Cash.
Colliers is also marketing large format retail Joondalup Gate, owned by Perth fund manager APIL.
Like neighbourhoods, WA has only seen two LFR transactions each year since the beginning of 2023.
This is only the third LFR asset in WA to hit the market in three years, after Arise Developments’ sale of Joondalup Square in December to US giant Barings for $74 million in Australia’s largest LFR transaction of 2024, which was negotiated by Colliers.
