This article is from the Australian Property Journal archive
A NEW Kmart store in the northern Gold Coast suburb of Oxenford has been sold to a Melbourne investor for $22.7 million, setting a new record low yield of 5.95%.
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The property consists a new 6,200 sqm freestanding retail building, leased to Kmart on a 12-year term with four six-year options. There is also on grade parking for 184 vehicles and a site area of 13,550 sqm.
The Kmart store was offered to the market via an expressions of interest campaign conducted by Peter Tyson and Jon Tyson of Savills.
Tyson said the sub-6% yield eclipses the recently set record of 6.04% achieved in the sale of the Masters Home Improvement store in Melbourne’s Williams Landing.
“The surge in investor activity in the retail can you buy accutane online uk sector continues to track at strong levels with the weight of capital in the market fuelling record demand and driving record low yields
“Freestanding single tenant retail investments with long leases are favoured by many passive investors due to the low leasing risk, ease of management and simplicity,” he added.
Tyson said the strong sale result followed overwhelming investor interest with more than 160 enquiries throughout the short campaign.
He added that enquiry was predominately from private investors but also included syndicators, REITs and fund managers.
The sub-6% yield result is understood to represent the lowest yield in Queensland for a freestanding retail asset in this higher price range and one of the lowest results recorded nationally for a discount department Store asset.
Australian Property Journal