- Located 45km northeast of Rockhampton, Emu Park comprises 2,795 sqm of lettable space
- Tannum Shopping Centre was sold for a yield of 4.9%
- Both sales were facilitated by Savills
Demand remains high for retail assets in regional Queensland, with two new modern neighbourhood shopping centres selling for over $36 million in total during the past few weeks.
Emu Park Village
A neighbourhood shopping centre in Emu Park, on the Capricorn, was sold recently for $17.95 million following an expressions of interest campaign.
Emu Park Village, located 45 kilometres northeast of Rockhampton and 15 kilometres south of Yeppoon, consists of 2,795 sqm of lettable space, anchored by Drakes Supermarket and four speciality stores.
Additionally, the centre includes a café, chemist, a tobacconist and a first-floor office. 95% of the centre’s gross floor lettable is leased to either a national or chain trader.
The property has been sold to a private Victorian-based investor, with the sale price representing a sharp yield of 5.47%.
Jon Tyson and Michael Harcourt of Savills facilitated the sales campaign, which they said attracted over 100 enquiries and multiple offers to purchase.
“This property attracted solid interest due to the dominant and compact nature of the centre as well as the region’s strong economic growth fundamentals.” Mr Tyson said.
“The Capricorn Coast and Rockhampton region has seen ongoing population growth over recent years and is forecast to keep growing strongly underpinned by sea-change and lifestyle minded residents driving the (relatively affordable) housing market and in turn which underpins demand for food and service requirements”
Jon Tyson, Savills
Mr Harcourt added the sale was influenced by heavy infrastructure activity nearby.
“The region’s construction boom including several multi-million-dollar infrastructure projects has made the area a popular investment location as buyers seek to acquire stable “daily needs” assets as interest rates rise.”
Tannum Central Shopping Centre
Located near Gladstone, Tannum Central Shopping Centre sold for $18.5 million, representing a 4.9% yield.
The deal was sold off-market also by Jon Tyson, with Peter Tyson on behalf of Whistle Funds Management.
The fund manager, who acquired the centre in 2011, has made several disinvestments recently including the Woolworths supermarket in Narrabri, NSW and Coles-anchored Highfields Plaza near Toowoomba. Both were sold with yields of 4.4% and 4.86% respectively.
Andrew Vize, Managing Director of Whistle Funds Management, said their group investment strategy has been to invest in daily-needs retail assets during counter-cyclical markets.
“With these divestments we sought to capitalise on the current favourable market conditions crystalising significant value uplift in addition to strong income through the holding period of each fund,” he said.
Mr Tyson said the centre had sold “quickly” to a local private investor following a short off-market sale.
“Neighbourhood retail assets remain popular across the Country and this result reflects the strong demand for the asset class,” added Mr Tyson.
The open neighbourhood centre was originally built in 2004, and covers 4,403 sqm in gross floor area, anchored by the 2,591 sqm Coles supermarket and 14 speciality tenants.
The centre dually services Tannum Sands and Boyne Island, located 25 kilometres from Gladstone.