This article is from the Australian Property Journal archive
THE recently opened Woolworths-owned and anchored Warbu-Bellmere Shopping Centre has hit the market amidst mounting investor demand.
Opened in August 2023, the shopping centre is located along the Brisbane to Sunshine Coast growth corridor and is anchored by a 10-year lease to Woolworths, which occupies 71% of centre GLA and is the largest full-line supermarket in the main trade area.
The supermarket giant has listed the 5,164sqm centre, which boasts an 8.3-year WALE, after recent successful sales of shopping centre sales.
Michael Hedger and Joe Tynan from CBRE have been appointed to manage the sale via an expression of interest campaign.
“Following the recent Queensland sales of the Woolworths-anchored Poinciana Place Shopping Centre (5.49%) and Mountview Shopping Centre (5.27%), we are continuing to field strong investment demand from the private sector,” said Hedger, state director of retail investments at CBRE.
“We expect the Warbu-Bellmere sales process to generate interest from both domestic and international investors given the pent-up demand we are seeing in the market, particularly for brand new shopping centres in strategic growth corridors.”
Warbu-Bellmere Shopping Centre features the latest format Woolworths Direct-to-Boot drive through service, with key tenants including BWS, Discount Drug Store and Snap Fitness.
This in addition to a food and dining precinct and a covered alfresco seating area.
“Warbu-Bellmere Shopping Centre is a well-designed shopping centre which meets the needs of the rapidly expanding catchment area,” said Tynan, state director of retail investments at CBRE.
The asset is expected to benefit from its placement within a rapidly expanding main trade (MTA) area population, which is forecast to grow by 4.8% per annum to more than 28,000 people by 2041.
The MTA’s total retail spending is currently estimated at $571.4 million and is anticipated to increase by a 6.9% per annum growth rate to over $1.89 billion by 2041.
“One of the unique features is the 500 solar panels, offsetting 20% of the supermarket’s electricity. Woolworths Group is aiming to receive a 4-star Green Star development rating for the Centre,” added Tynan.
Another Woolworths-anchored centre sold on a on a 5.44% return in early 2023, with the Westpoint Shopping centre in south Brisbane selling for $46.5 million.
After hitting a cyclical low in 2023, the shopping centre sector appears to be gaining traction with investment activity forecast to pick up by 50%, according to a recent CBRE report.
Woolworths recently posted a $781 million loss for 1H24 driven by two one-off major accounting write-downs, while CEO Brad Banducci announced his departure.
