Fernvale mall trades at 5.1pc yield

The asset includes a 1.15 hectare portion permit-ready for 3285 square metres more space.

A private investor has paid $35.55 million for a small shopping centre and neighbouring development site at Fernvale, a non-metropolitan area about 23 kilometres west of Brisbane.

The price for Fernvale Village at 1455 Brisbane Valley Highway reflects a fully let 5.1 per cent yield.

Fernvale Village contains a Woolworths, Reject Shop and 14 specialty stores.

The asset includes a 5824 square metre mall on 1.78 hectares with 221 car parks.

Anchored to Woolworths which contributes to 42pc of the income excluding turnover rent, the complex also contains a mini-major occupied by The Reject Shop and 14 specialty stores, one of which is vacant.

An adjoining 1.15ha block is approved for 3285 sqm of retail space and 180 parking bays.

CBRE’s Michael Hedger and Joe Tynan with Colliers’ James Wilson and Stewart Gilchrist brokered the deal for the vendor which developed the asset on the site of a timber saw mill in 2008.

Late last year we reported YFG Shopping Centres paid Blackstone $257m for the Strathpine Centre, north of Brisbane.

Not long earlier, south west of the city, syndicate NATGEN Group outlaid $10m for the Rededge Shopping Centre while SCA Property Group spent $54.5m for the Moggil Village (story continues below).

Significant unsatisfied demand: agents

The agents said the on-market Fernvale Village campaign engaged over $450m in offers from institutions and private investors.

“There was significant demand due to the asset’s standing as a rare core plus opportunity; an existing shopping centre anchored by a high performing supermarket, with a turn-key development opportunity providing immediate capital value uplift,” according to the executive.

Mr Hedger added the buyer was driven by anticipated growth in the catchment, which includes 2000-plus dwellings under construction within four kilometres.

“The only major full-line supermarket within an approximate 20 kilometre radius, Fernvale Village services an extensive and fast growing region while also being positioned along the major thoroughfare of Brisbane Valley Highway,” he said.

Some $2.56 billion in neighbourhood shopping centres traded in 2021, according to Mr Wilson, contributing to yields dropping 70 basis points.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.