Horizon @ Wellington Point sells off-market

The medical and retail centre sold for $18.125m three years ago following a public (expressions of interest) campaign. It traded for $14.43m off-market this year.

A medical and retail complex east of Brisbane has traded off-market for $14.43 million – a 20 per cent drop on the price the vendors, two local private investors, paid in early 2017.

The 10-year old Horizon @ Wellington Point contains three buildings with a total 2616 square metres of lettable area.

The site (marked, centre) abuts medium density housing in Wellington Point, 22 kilometres east of Brisbane.

Rented to 21 occupiers including a doctor’s surgery, physiotherapist, chiropractor, optometrist and chemist, and anchored by an IGA supermarket, it sits on a 6099 sqm Centre zoned plot at 677-685 Cleveland Road East.

While no details about the rental return have been disclosed since 2017 – putting that fully let net annual income ($1.27m) against the latest deal value – equates to a yield circling 8.8 per cent.

Off-market campaign results in lower flip price…again

When Horizon @ Wellington Point last sold – for $18.125m three years ago – it was following a public expressions of interest campaign.

Said to have attracted 60 enquiries, eight formal offers came in – the sale price reflecting a seven pc return (story continues below).

The investment was unsuccessfully marketed for sale via an expressions of interest campaign 16 months ago – but that online listing is still active.

Following an off-market negotiation this year, JLL’s Jacob Swan and Campbell Bowers traded the asset to a Queensland investor.

Wellington Point is 22 kilometres from the city.

The commercial investment is the second to recently be flipped off-market for an outcome substantially less than what the vendor paid.

Last week, a west Melbourne childcare centre which sold for $6.8m upon completion and following a public marketing campaign in 2017, traded for a speculated price less than $5.5m after a private promotion.

The asset was returning annual rent of $1.27m when it traded on a seven per cent return in 2017. Assuming a similar rental today, but the $14.43m sale price, a yield would circle 8.8pc.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco