Prime sells Molendinar’s Crestwood Plaza for $17.6m
Following failed campaigns in 2018 and last year, Prime Space Projects has sold Crestwood Plaza at Molendinar, eight kilometres west of Surfers Paradise.
The $17.75 million deal with a Sydney investor reflects a 6.9 per cent passing yield.
The Adelaide vendor paid $12.8m 10 years ago – and undertook a $5m expansion and renovation in 2015.
The neighbourhood complex previously traded 14 years ago for $14.52m.
It was completed in 2005 by local developer Mark Howard who spent $2.2m on the land.
The deal comes a fortnight after Perth syndicate Kerching Capital offloaded a Brisbane neighbourhood shopping centre Sandstone Village for $12.6m.
Replacement anchor needed before relisting: new agency
On a 1.22 hectare rectangle shaped site at 458 Olsen Avenue, on the north west corner of Crestwood Drive, Crestwood Plaza is designed with two buildings and 179 car parks.
It contains a 1140 square metre anchor tenancy which was recently leased to Netherlands’ Superspar for 10 years with options.
The balance c2946 sqm is fit out for 16 specialty stores – seven businesses quit when the former anchor, Spanos IGA failed to renew in late 2019, and when COVID hit (story continues below).
It was this centre where Melbourne based Dosa Hut chose to open its first Gold Coast restaurant 18 months ago.
The property is opposite a Bunnings.
Colliers International’s Ryan Chandler said Crestwood Plaza failed to find favour during its last two sales campaigns (with different agencies) because of a perceived leasing risk.
Late last year, the agent found the replacement anchor – as well a dentist to absorb about 150 sqm of the vacant space.
Earlier this year the executive with colleague Stewart Gilchrist pre-launched a sales campaign – when the purchaser, represented by Angelo Efstathis of First Asset Management, also Brisbane-based, stepped in.
“The retail investment market is currently starved of secure, income generating neighbourhood centres and as a result, these opportunities are in high demand with strong interest coming from known investors to acquire prior to the assets publicly entering the market,” Mr Chandler said.
Mr Gilchrist added retail investments of this size are being absorbed by known investors because of a lack of supply.
Next year should see more listings though, according to the executives, “as neighbourhood centres are stabilising and strengthening following the retail uncertainty that COVID bought”.
Earlier this year, Nationwide Towing and Transport’s founders sold a Molendinar industrial investment for $3.2m.
