Wen family snap up another Queensland mall

Park Ridge Town Centre returns $5.2 million annual net rent.
RG Property added specialty stores, two pad sites and a Coles to the centre.

The Wen family’s Chin Hong Group has acquired its 11th Queensland shopping centre – the Park Ridge Town Centre, in Brisbane’s Logan growth corridor.

Village Dandenong sold in mid-2020.

The 6.25 hectare asset, anchored to Coles and Woolworths, at 3723-3744 Mount Lindsesay Highway, Park Ridge, is costing $86 million, reflecting a 6.04 per cent net yield.

The vendor, Perth-based syndicate RG Property, paid $20.1m in 2012 for what was then a 3.69ha mall, with one supermarket tenancy.

It later spent $5m adding two more parcels, totaling 2.55ha, on which it created two pad sites – now occupied by Ampol and KFC – and another supermarket tenancy, taken up by Coles.

Savills’ Peter Tyson and Steven Lerche were the agents; the same brokers sold the shopping centre to RG Property 11 years ago.

With the deal, the local Wen family, originally from Thailand, hold 12 south east Queensland malls including the Ilana Plaza, which it acquired from the Raptis family for $56m in 2019, Morningside Central and the Springwood Shopping Centre.

Park Ridge Town Centre

All up, Park Ridge Town Centre contains 14,315 square metres; as well as the supermarkets there is a mini-major occupied by Prices Plus and 31 specialty stores; the Weighted Average Lease Expiry by area is 8.3 years.

RG Property upgraded the complex in 2016 – with Chin Hong Group still able to claim depreciation benefits.

The incoming owner also has flexibility to expand the complex with a hectare available for development immediately.

Longer term – with more than 131,000 people forecast to move into the catchment by 2041, contributing to Moving Annual Turnover growing up to 85 per cent according to the agents, more retail could be considered too.

“The centre attracted enquiries from a wide buyer pool including local, interstate and offshore investors,” Mr Tyson said (story continues below).

RG Property sold Brisbane’s 410 Queen Street in early 2020.

“A dual supermarket anchored centre, Park Ridge Town Plaza…is unique in today’s marketplace,” he added.

“The scale and dominance of this high performing centre relative to its peers was obvious,” according to the executive.

Mr Lerche said that 55pc of Park Ridge Town Plaza’s income is derived from the supermarket tenancies.

“The buyer was attracted by the centre’s dominance and strategic location in a major residential growth corridor,” he added.

“We were pleased to deliver a strong result for investors as this syndicate comes to an end,” an RG Property spokesperson said.

“We have been able to deliver robust cash flows as well as strong capital growth over the life of this investment,” they added.

The deal comes three years since RG Property offloaded the 1.87ha, 5343 sqm Village Dandenong, in Melbourne’s south east, to an offshore investor for $29.1m.

Struck during the national lockdown, the transaction reflected a 5.96pc fully let net yield.

Not long earlier, the asset manager sold a Brisbane CBD office – 410 Queen St – to PGA Properties for $53.5m.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.