This article is from the Australian Property Journal archive
A PRIVATE offshore family has added another Australian asset to their property portfolio, acquiring the brand-new Flagstone Village shopping centre from Brisbane-based developer Wild Mint Properties for $20.48 million.
Flagstone Village has a net lettable area of 2,857 sqm over three allotments and is anchored by 7-Eleven, IGA, BWS, Terry White Chemmart, Snap Fitness and Domino’s Pizza, and returns around $1.41 million per annum.
CBRE’s Michael Hedger and Joe Tynan negotiated the sale, with the price tag reflecting a passing yield of 5.96% and fully leased yield of 6.76%.
Flagstone Village is on a 12,650 sqm corner site with three street frontages and 109 on-site parking spaces.
Located between Brisbane and the Gold Coast, the project was facilitated by Michael Cross of SPPartners.
Hedger said the sale highlighted the continued appetite strength for quality retail investment properties.
“We continue to see experienced capital in the retail market, particularly from the private sector and offshore groups. This capital is seeking core retail investments that offer strong fundamentals – national tenants, diverse income stream and high-growth locations.”
Tynan said the shopping precinct’s location in one of Queensland’s strongest growing residential locations would help position it for future success.
He said the purchasers were attracted to the centre’s diversity of income, being generated from non-discretionary retailers and offering consistent income growth, as well as its functionality and quality presentation.
Meanwhile, News Corp reported last week that Charter Hall is in due diligence to purchase Stockland’s Caloundra shopping centre, at the southern end of the Sunshine Coast, with a sale expected to be struck at around $105 million.
Australian Property Journal
