Veteran Queensland developer Don O’Rourke has put a new neighbourhood shopping centre in Brisbane up for sale amid strong demand from private and institutional investors for convenience retail property after $150 million of assets changing hands in the past few weeks.
Price expectations are understood to be in excess of $50 million for Moggill Village, a 6394 square metre open-plan mall in Moggill in Brisbane’s western suburbs, anchored by a Coles supermarket, Australia Post store and an Anytime Fitness centre.
The property at 3366 Moggill Road was developed by Mr O’Rourke’s Consolidated Properties Group and finance partner Newground Capital.
The $45 million development, comprising three separate buildings with 315 car bays on a 2.23-hectare site, opened its doors in June.
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Based on fully-leased net income of $2.7 million, a $50 million sale would equate to a yield of 5.4 per cent.
Moggill Village is being marketed by Jacob Swan, Sam Hatcher and Ned McKendry of JLL.
The Brisbane mall offering comes as $150 million of neighbourhood centres, supermarkets and homemaker centres changed hands on yields between 4 and 6 per cent.
In regional Victoria, the Eastwood Village Shopping Centre in Bairnsdale and West Place Shopping Centre in Churchill sold separately to Sydney-based investors for $15 million each on yields of about 6 per cent.
Located about 280kms east of Melbourne, Eastwood Village Shopping Centre is anchored by a Ritchies Supa IGA plus 11 specialty shops and a medical centre.
It was bought by Sydney-based Hadley Green Investment Group.
Woolworths-anchored West Place Shopping Centre in Churchill in the Latrobe Valley was acquired by investment firm and developer Revelop from local developer Minster Constructions.
“Revelop has a very optimistic outlook on neighbourhood shopping centres that are well located, convenient and offer a truly ‘one-stop shop’ customer experience,” said director Charbel Hazzouri.
Tom Noonan and Stuart Taylor from JLL handled the sale of both assets.
“The two transactions reflect the strong demand from national investors for retail assets in Victoria’s regions, with border closures proving to be a non-issue, as both centres were contracted ‘sight unseen’ by the purchasers,” Mr Taylor said.
In Melbourne’s northern suburbs, the brand-new Woolworths Greenvale Lakes in Roxburgh Park sold for $27.7 million on a tight yield of 3.95 per cent.
Stonebridge Property Group ‘s Justin Dowers, Kevin Tong and Philip Gartland acted on behalf of Woolworths. It sold to Melbourne-based Taroni Investments directed by Mark and Nicole Saltzman.
In Melbourne’s west, the Coles-anchored Melton Station Square Shopping Centre sold for $43 million on a 4.95 per cent yield to a syndicate of locally based Asian investors headed by the Lay family from Cambodia. The mall was sold by Aon Investments, a subsidiary of the Loucom Group founded by ocean racing legend Lou Abrahams and now run by his son Arthur.
Rounding out the deals, ASX-listed Axiom Properties said last week it had reached an agreement to sell its $50 million Butler Central Homemaker development, due for completion next year, to Perth syndicator The Lester Group.
The 13,300sq m mall will be anchored by The Good Guys, a Goodlife Gym, Beacon Lighting and Autobarn.
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