Clarence buys south west Brisbane shopping centre
Clarence Property has snapped up a south west Brisbane mall developed in the 1980s and renovated 15 years ago.
Metro Middle Park also has high density residential based mixed-use development upside.
The Lennox Head headquartered asset manager established 31 years ago by Peter Fahey is paying $40.4 million – a seven per cent fully let net passing yield based on the rent when it was listed last July.
Vendor, Horizon Investments, outlaid $35.2m – a 6.47pc return – in mid-2017, near a commercial real estate cycle peak.
That seller was a receiver acting after former owners, mining magnate Jim Gorman and business partner, Harold Shand, entered dispute.
At 90 Horizon Drive, Middle Park, the property was also once owned by Premier Pacific, which Suncorp placed into receivership in 2011 after missed loan repayments.
Metro Middle Park
The only neighbourhood centre in an expansive trade catchment – and with the only major supermarket – Metro Middle Park contains non-discretionary components, including for a medical centre and professional services.
Coles pays turnover rent for the 2626 square metre store it refurbished in 2012.
The balance of the 6411 sqm asset is configured with over 30 specialty retail tenancies and two kiosks.
On 2.1 hectares, there are also 301 car parks.
Savills’ Peter Tyson said the District Centre zoned block has development upside – with 77,000 sqm able to be added in improvements up to four floors.
Clarence plans to hold the asset, 90 Horizon Drive, at the south west corner of Riverhills Road, in the Property Diversified Fund.
Recently in Brisbane, for other funds, it sold the Woolworths anchored Logan Village and a hardstand site, at Heathwood.
Middle Park is about 18 kilometres south west of Brisbane’s CBD and 25km east of Ipswich.
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