- Sold to private investor for $35.5M after 14 offers and 170 enquiries
- Woolworths-anchored centre spans 1.78ha, with approval for further 3,000sqm expansion
- Neighbourhood shopping centre transactions reached new heights in 2021, totaling $2.56B
A non-metro shopping centre located west of Brisbane has sold to a private investor for $35.5 million.
The Fernvale Village shopping centre received 14 offers prior to selling at a fully-leased yield of 5.1%.
The 2.93 hectare commercial site was campaigned by CBRE agents Michael Hedger and Joe Tynan in partnership with Colliers agents James Wilson and Stewart Gilchrist on behalf of a private investor.
Woolworths-anchored centre with expansion potential
The asset proved popular amongst investors, receiving close to 170 enquiries during the Expressions of Interest campaign.
“The on-market Expressions of Interest campaign engaged over $450 million in value of offers from institutional and private capital, highlighting the depth of market for Queensland Neighbourhood Shopping Centres.”
Stewart Gilchrist, Colliers
The Woolworths-anchored shopping centre is support by The Reject Shop and 13 additional specialty stores, spanning 5,824 sqm of GLA.
The site includes 1.15 hectares of vacant land with potential for expansion, having already received DA approval for a further 3,285 sqm of retail gross floor area.
“There was significant demand due to the asset’s standing as a rare core plus opportunity; an existing shopping centre anchored by a high-performing supermarket, with a turn-key development opportunity providing immediate capital value uplift,” said Mr Tynan
“The purchaser’s interest was driven by the growth of the catchment area, which includes a proposal for an estimated 2,000-plus additional lots and significant infrastructure expenditure to service them,” Mr Hedger said.
Shopping centres proving popular asset
Located in the rural town of Fernvale in Queensland’s Somerset Region, Fernvale Village remains the only major full-line supermarket in a roughly 20 km radius.
The shopping centre services an extensive and rapidly expanding area in addition to being situated along the high trafficked Brisbane Valley Highway.
The sale of Fernvale Village was only one of many recent shopping centre sales, as the asset solidifies its popularity among investors.
“There was $2.56 billion in value of Neighbourhood Shopping Centres transacted in 2021, the highest level ever recorded for the sector.”
James Wilson, Colliers
“The Neighbourhood Shopping Centre sub-sector recorded 70 basis points of yield compression in 2021, compared to the previous year, driven by growing investor demand for essential service retail investments anchored by Woolworths and Coles,” Mr Wilson concluded.
