Chevron Renaissance was developed by the Raptis Group in 2000. Jones Lang LaSalle and Colliers International are marketing the shopping centre.

The assets – the Sofitel Gold Coast and Oasis Shopping Centre – were expected to fetch about $200 million. Funds would have cut gearing and reinstated distribution.

Managing director John Hudson is reported in the AFR as saying the company was considering other ways to cut its debt levels, now.

It also contains 48 specialty retailers.

Stephen Kidd, Colliers International Associate Director of Retail Agency, said the recently renovated holding had been bought by an offshore investor looking to expand their existing Queensland retail portfolio.

The sale of Village Fair, located at 3358 Mt Lindesay Highway, was negotiated on behalf of vendor Premier Pacific by Mr Kidd and Colliers International National Director of Retail Agency, Stewart Gilchrist.

The sale concludes a national expressions of interest campaign, which generated significant enquiry from more than 65 local and international investors.

With a net lettable area of 4,683sq m, the fully leased Village Fair generates a net income of $1.55 million per annum. Rents currently average $503sq m net, with budgeted outgoings of $62sq m.

“The strategic mix of specialty tenants is ideally suited to a convenience based centre of this nature, providing local residents with an easily accessible alternative to larger neighbouring centres,” Mr Kidd said.

“An extensive expansion and refurbishment was completed in December 2007, comprising of a significant upgrade of facilities throughout and delivering a modern shopping environment.”

Village Fair is anchored by a full-line Supa IGA Supermarket and complemented by 26 complimentary specialty retailers including Loot Homewares, Pizza Capers and Travel World and a variety of quality dine-in and take away outlets. The complex also has 227 car parking spaces at grade and basement level.

The site occupies about 1.29 hectares, with multiple street frontages to Mt Lindesay Highway, Vansittart Road and Estramina Road. 

“The investor who purchased the holding was looking for a quality investment, and selected Village Fair because it offered excellent exposure due to its location, and revenue security from national and chain tenants which provide about 65 per cent of the total income stream,” Mr Kidd said.

Mr Gilchrist said the sale was evidence of increasing confidence in the retail investment market.

“Last year was characterised by few large sales however,in 2010 there is an abundance of investors seeking quality stock anywhere along the eastern coast of Australia,” he said.

“Funding remains an issue, with the banks still reluctant to finance many major real estate transactions.  This is providing an excellent retail environment for investors who are able to provide 50 per cent of the purchase price from cash reserves.

“Further, many institutions are now cashed up from capital raisings and are likely to start acquiring better quality assets this year.

“As a result, we expect retail yields to remain stable for the majority of this year, however it is likely they will begin to firm towards the fourth quarter of this year.”

Regents Park is located in the Browns Plains catchment within Logan City municipality, which enjoys a close proximity to extensive commercial and industrial facilities and the intersection of major regional arterial roads including the Pacific Highway, Mt Lindesay Highway and the Logan and Ipswich Motorways.