Kerching rings up $12.6m from Sandstone Point Village
Kerching Capital has sold Sandstone Point Village – a modern shopping centre in Brisbane’s outer north – for $12.6 million.
The deal, with a private investor, was struck at a 6.5 per cent yield – which the marketing agency said compares stronger than the pre-COVID level average.
The Perth based vendor acquired the 9236 square metre property near Bribie Island in 2016 paying $10.4m, reflecting a circa seven per cent return.
CBRE’s Michael Hedger co-marketed the neighbourhood centre then, for Property and Pathways.
The same agent, with Joe Tynan, represented Kerching, a boutique investment manager, this time.
Sandstone Point Village: income generating development site
The Sandstone Point complex at 204-208 Bestmann Road is about a 65 kilometre drive north east of the Queensland capital.
With 2389 sqm of lettable area, it covers a small land component – the agents promoting any incoming owner could easily build into the 158-bay car park and immediately up annual income $150,000 to nearly a million.
A larger redevelopment could also be considered, possibly creating tenancies to attract occupiers needing greater space.
Prior to it being offered for sale in 2016, a 15 year lease was secured with the biggest tenant, IGA (story continues below).
Before listing it this time, Kerching negotiated a seven year agreement with the next largest renter, a medical centre.
Combined, these businesses contribute two thirds to the income.
There are seven specialties; BWS, a dentist and hairdresser are other essential service retailers to fill them.
Sandstone Point Village has a 5.8 year Weighted Average Lease Expiry.
Demand outweighs supply, even for retail
Eight genuine bids came in for the asset, Mr Hedger said.
“We continue to see strong demand for well-located neighbourhood shopping centres, particularly those that have traded well through the COVID period,” according to the executive.
“Centres that offer a long WALE and demonstrate resilient income profiles are transacting at a premium”.
Mr Tynan added “in the current environment of low cash returns and cheap lending, we’re fielding strong interest in securely leased retail assets, however few quality properties are coming to market”.
