Woolworths divests another Brisbane shopping centre

Two housing projects are earmarked for sites around Woolworths Mountview.

Woolworths has sold its fourth Brisbane shopping centre this year.

Woolworths Mountview opened last June.

The recently completed asset, Woolworths Mountview, at Redbank Plains, fetched $35.2 million, reflecting a 5.27 per cent net passing yield, from an offshore investor.

The supermarket occupies just over three quarters of the 4981 square metres of lettable area.

The complex’s Moving Annual Turnover is c$187m, which CBRE selling agents Michael Hedger and James Douglas say is expected to increase to $456m by 2041 – a 4.8pc annual rise.

The deal comes a week since we reported Woolworths banked $108m from three shopping centres, like Redbank Plains, offered with leasebacks.

Two of those were in Brisbane – the Dakabin Shopping Centre which traded for $40m and Bannockburn ($26m).

Both sold to Henry Yuen’s Centra Property Group.

In February, meanwhile, Woolworths offloaded the modern Westpoint shopping centre in Browns Plains for $46.5m – a 5.44pc return.

That buyer was Horwell Property Investments.

Redbank Plains is 27 kilometres south west of the CBD (story continues below).

Woolworths Westpoint at Browns Plains sold in February.

Woolworths Mountview

At 171-193 School Road, near the south west corner of Mount Juillerat Drive, the 1.75 hectare Woolworths Mountview complex contains 243 car parks.

National retailers contribute to 80pc of the annual income.

The Weighted Average Lease Expiry meanwhile is 8.4 years.

Nine offers came in following an expressions of interest campaign, according to Mr Hedger; three were at a value near the sale price.

“Investor demand in the private sector continues to build momentum, particularly for newly built assets as buyers take into consideration the replacement value of centres given the rising construction costs,” according to the executive.

Mr Tynan added the purchaser was attracted to the proposed greenfield residential and commercial development in the area.

A train station is also mooted – be it after 2030 – about a kilometre away.

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Marc Pallisco

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