Wingate, Shore buy Gold Coast mall
A shopping centre recently replacing part of the former Gold Coast Hospital has sold to Wingate Group and Shore Financial.
Queen Street Village, on 1.9 hectares at Southport, is costing $86.55 million – a 7.05 per cent net passing yield – from Chauvel Capital.
With 13,071 square metres, IGA and Dendy are the anchors.
Also with 40 specialty stores – several tenanted to essential services businesses including a medical centre, dentist, vet and chemist – the weighted average lease expiry is 9.4 years.
Vacancy is 5.6pc.
There are 368 car parks too.
The deal includes airspace, a volumetric title known as Lot 200, over the supermarket, which could accommodate a 20 level apartment building.
Gold Coast Hospital closed at the site in 2013.
Hospital sell-down
Chauvel acquired Queen Street Village mid-construction two years ago, from administrators acting for David Blanck’s Brisbane-based Property Solutions – outlaying $44.3m.
Also in 2022, builder Hutchinson bought other pieces of the ex-hospital; spreading 3.2ha, these are earmarked for high density housing.
Last year meanwhile, United Petroleum co-founders turned developers, Eddie Hirsch and Ari Silver, acquired a 5401 sqm parcel, formerly part of Queen Street Village, at the prominent corner of Nerang St, for $10.5m – for an as yet unknown project.
Mr Hirsch and Mr Silver are like Wingate, Melbourne-based. Wingate’s property and corporate credit investment management business is also in the process of being acquired by Singapore’s listed CapitaLand.
Chauvel and Shore’s headquarters are in Sydney (story continues below).
Queen Street Village is Shore’s maiden property investment.
Profitable exit planned
At 129 Queen Street Queen Street Village’s catchment – c141,000 – is expected to grow four per cent annually until 2041.
Wingate and Shore will hold it in a trust which closed subscribed mid-year.
The strategy is to offload the property in four years – hopefully for $120-$130m.
Fixed rental increases will also kick in over the period, improving revenues 15-20pc, the buyers said.
More income could also be derived from solar and signage, they added.
There is also the potential to add value through a tenant remix strategy.
McVay Real Estate’s Sam McVay and Dan McVay represented Chauvel.
Southport is about three kilometres north of Surfers Paradise.
Also this week we are reporting Brisbane based fund manager Natgen is buying a strata titled medical centre investment in the suburb, for $9.65m.
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