An offshore family with several Australian property assets is paying $20.48 million for a new shopping centre at Flagstone, a satellite town about 50 kilometres south of the Brisbane CBD.
Flagstone Village returns annual rent of $1.41 million.
Within Queensland’s second largest residential growth corridor, anticipated to house about 120,000 people by 2062, construction of the asset was only recently completed by Brisbane-based Wild Mint Properties, which was also the vendor.
On a 1.27 hectare site and containing 2957 square metres of lettable area, Flagstone Village is occupied by 7-Eleven, which pays $399,680 per annum for its service station site.
BWS, IGA, Terry White Chemmart, Snap Fitness and Domino’s Pizza rent part of the complex called Markets at Flagstone, which contributes $697,522 to the total annual rent.
A medical precinct returns just over $315,0000 in annual rent.
The asset also offers 109 car spaces, accessed from three streets.
CBRE selling agent Michael Hedger said the transaction highlighted the continued appetite for quality retail investments.
“We continue to see experienced capital in the retail market, particularly from the private sector and offshore groups,” the broker said. “This capital is seeking core retail investments that offer strong fundamentals – national tenants, diverse income stream and high-growth locations”.
Colleague Joe Tynan said the purchaser was attracted to the centre’s diversity of income “being generated from non-discretionary retailers and offering consistent growth”.
“Combined with the functionality and quality presentation of the complex, it is easy to understand the appeal of this holding,” Mr Tynan added.