A fully leased neighbourhood shopping centre in Brisbane’s Logan growth corridor has traded for $46.5 million.
Local outfit Horwell Property Investments is picking up the Westpoint complex at Brown Plains on a 5.44 per cent yield.
The seller was another private investor.
It is the latest major commercial property to exchange since the pandemic, in the suburb, 21 kilometres south of town.
Last April, Melbourne’s MPG Funds Management chose Brown Plains to acquire its maiden non-Victorian asset for its Bulky Goods Retail Trust. At nearby 48 Brown Plains Rd, it cost $11.31m.
Twelve months ago, meanwhile, EG acquired a half-stake of the Grand Plaza shopping centre across the road – with 53,375 sqm – for $215m from Invesco.
The 5978 square metre Westpoint complex occupies just 29pc of the 2.07 hectare block at 8-24 Brown Plains Road, on the north east corner of the Mount Lindesay Highway, also the border of Hillcrest and Parkinson.
Woolworths has anchored a 3122 sqm tenancy since 2008.
Bank of Queensland and Subway are amongst the highest profile specialty stores while Hungry Jack’s occupies a pad site with a drive-thru.
The property also came permit-ready for a 432 sqm extension.
“The success of the transaction comes off the significant amount of private investor interest generated from recent campaigns such as Rochedale Village and Zone Underwood,” Mr Hedger added.
“The asset attracted interest from onshore and offshore investors during the expressions of interest campaign,” according to the executive.
“The growth characteristics displayed by the centre resulted in a strong yield despite the current state of the retail investment market which has seen a marginal softening due to the increasing cost of capital, following the Reserve Bank of Australia’s gradual increases to the cash rate since May, 2022”.
The area’s population is forecast to grow 12.7pc by 2032, the agents said.
“The high performing Woolworths is extremely close to achieving turnover rent,” Mr Tynan added.
“[The] DA…was a drawcard for prospective purchasers with growth prospects at the forefront of investment decisions,” according to the executive.
“The projected population growth in the catchment, as well as the centre’s fully leased tenancy profile, long history of tenant retention and 6.5 year Weighted Average Lease Expiry were also critical to the appeal of Westpoint, providing a secure income profile”.
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