burleigh home life
Aerial shot of the shopping centre in Burleigh Heads. Image supplied.
  • The centre was acquired by a private Gold Coast family
  • Deal was negotiated by a team from Colliers and JLL
  • Centre currently provides a rental income of around $3.39 million

An impressive price tag has been achieved for a commercial property in Burleigh Heads.

The Burleigh Home + Life centre was acquired by a private Gold Coast family for $72.5 million.

The deal was negotiated by Steven King and James Wilson of Colliers in conjunction with Jacob Swan, Sam Hatcher and Ned McKendry of JLL on behalf of diversified property and investment group Gordon Corporation.

The transaction represents the highest price paid for a large-format Queensland retail centre in over three years. The competitive Expressions of Interest campaign saw interest from various institutional players.

Located at 197-207 Reedy Creek Road, the centre is adjacent to Stockland Burleigh Heads and is anchored by Autobarn, Anaconda and Beacon Lighting, who occupy 85% of the net lettable area,

Formerly the property was part art of the Kaulfland divestment, and was one of three major retail centres in Southeast Queensland placed onto the market by Gordon Corp during March.

The capitalisation rate for the centre is 4.68%, with the property delivering an annual net income of $3.39 million. Additionally, it is fully leased with a WALE of 8.3 years.

“It is incredibly exciting that a local family was able to fend off Institutional Capital after having been pipped on several occasions on similar offerings,” said Steven King, the Gold Coast Director in Charge at Colliers.

“The local families acquisition reflects the high quality of the development, and depth of capital targeting retail investments within the Gold Coast”

Commercial property resilient

burleigh home and life Anacaona
Anaconda is among the major tenants. Image supplied.

National Director of Retail Investment Services at Colliers, James Wilson, argued the sales campaign highlight the depth of demand for high-quality Large Format Retail Centres, noting over $500 million in value of offers from both private and institutional investors.

“The centre is supported by an effective tenancy mix comprising non-discretionary retail, medical services and food and beverage facilities,” added Jacob Swan of JLL.

“It ticks the boxes in terms of internal investment parameters for many private and institutional investors who are looking to secure premium commercial assets in the Gold Coast market.

“Convenience-based assets offer resilient income streams and a non-discretionary tenancy base, providing investors with confidence despite inflationary economic conditions. It is these assets that will continue to outperform throughout 2022.”

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