Kaufland is continuing to snap up sites to owner-occupy, this time picking up the Morayfield Village Retail Centre in the Moreton Bay region, north of Brisbane.
The prominent centre at 177-189 Morayfield Road is a strategic buy for the Germany-based hypermarket: abutting the Morayfield Regional Shopping Centre which includes 59,300 square metres of lettable area and is anchored by Coles, Woolworths, Target, Big W, Kmart and Aldi.
Kaufland’s complex by comparison contains 6939 sqm of space, configured across one floor and leased to, amongst other retailers, Harris Scarfe, Mr Toys Toyworld, Suncorp Bank, Bank of Queensland, Rivers, Jenny Craig and National Hearing Service.
Morayfield Village Retail Centre occupies a 1.7 hectare site with 274 car parks.
Marketed by Savills last year to investors – the centre earns annual income of $1.743 million.
No sale price for the complex has yet been reported.
But assuming the asset is trading on a sub-8 per cent yield, one could speculate Kaufland is paying more than $22 million.
Kaufland will stock discounted-price local, regional and international products. Each outlet will contain a bakery, butcher and bottle shop.
Last August we reported that Kaufland was paying $19.7 million for a former Bunnings outlet in Queensland’s Burleigh Heads.
A year earlier, it acquired a former Bunnings outlet in Dandenong South (for $16.4 million) and another in Epping.
The Burleigh Heads, Dandenong South and Epping assets were sold by BWP Trust – the largest owner of Bunnings stores in Australia, with 69 outlets currently in its portfolio.
Kaufland was also recently permitted to open a store in Melbourne’s Chirnside Park.
In March we reported the retailer plans to build Australia’s largest distribution centre at Mickleham’s Merrifield Business Park, about 32 kilometres north of Melbourne.
Kaufland acquired its first Australian property to owner-occupy two years ago: the former Le Cornu furniture outlet on the Anzac Highway in Adelaide’s Forestville.