A Brisbane investor seeking an IGA-anchored retail asset found one, 970 kilometres north in Mackay, and paid $10.4 million.
Mackay West Shopping Centre at 331 Bridge Road is trading on a 6.75 per cent yield.
“In the current low interest rate environment, we’re fielding strong demand for retail assets which offer a resilient income profile and have strong investment fundamentals,” the agents added.
“However, a limited number of quality properties are formally available”.
Mid-year, Ballina-based Clarence Property paid Stockland $16.7m – a price reflecting a 7.1pc net passing yield – for the nine year old North Shore shopping centre in Townsville’s west Burdell.
Mackay is between that city and Rockhampton (story continues below).
Mackay West Shopping Centre
SUPA IGA, which occupies 80 per cent of Mackay West Shopping Centre’s gross floor area, is on a 20 year rental agreement.
The complex is designed with four specialty stores – one tenanted to BWS; the Weighted Average Lease Expiry is 9.8 years.
It occupies a 9227 square metre site within the suburb’s central activity precinct.
“Regional locations with exposure to major surrounding infrastructure projects are attracting investors’ interest and this is converting to strong pricing outcomes for non-discretionary based retail assets,” Mr Tynan said.