Sunshine Coast mall bought with revamp plan
Hamill Group founders Daniel and Kylee Burke have snapped up a shopping centre seven kilometres west of Noosa Heads.
Poinciana Place in Tewantin is costing the pair $17.5 million – a 5.49 per cent fully let net passing yield.
Woolworths anchors the bulk (2400 sqm) of the 3104 sqm space, contributing to 57pc of the income.
There are also nine specialty stores, some leased to national retailers, which fill 91pc of the area and 83pc of revenue.
There are 155 car parks too, including basement bays.
CBRE’s Joe Tynan, Michael Hedger and Louisa Blennerhassett represented the Melbourne vendor. Vinci Carbone’s Frank Vinci was transaction adviser.
Revamp planned
Mr Tynan said the Burkes are known for their value add initiatives in south east Queensland, including with the Woolworths anchored Camp Hill Marketplace – and a revamp is planned for Poinciana Place.
“The family’s acquisition of Poinciana Place gives the opportunity to largely replicate the strategy used in driving the success of Camp Hill Marketplace,” he said (story continues below).
“The sale achieved a 5.49pc yield which represents a very strong result in light of the market volatility, short WALE and requirement for immediate cap ex,” according to the executive.
Eight bids were received following an expressions of interest campaign which closed in mid-June.
Three offers were $17.5m – leaving the decision to come to terms.
“This transaction follows the recent sale of Woolworths Mountview, which changed hands for $35.2m, achieving a yield of 5.27pc,” Mr Tynan said.
“Pricing for neighbourhood shopping centres appears to be holding up better than other asset classes in the current higher interest rate environment,” he added.
“The key reason is the smaller transaction size which is attractive to private investors who may not require any debt,” according to the executive.
“Also, supermarkets have been resilient with sales generally increasing with inflation which drives income for these assets”.
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