- Comes following the sale of Shepparton Marketplace for $88.1 million
- Will be sold jointly by CBRE and JLL
- Both catchment areas recording strong population growth
Supermarket giant Woolworths (ASX: WOW) has announced the sale of two of its newest neighbourhood shopping centre developments in South East Queensland.
It is likely to sell given the strong demand for neighbourhood and regional shopping centres, with a Singaporean investor acquiring Shepparton Marketplace for $88.1 million.
The Dakabin and Bannockburn centres, both anchored by long-term leases to Woolworths, will have their sales campaigns jointly managed by CBRE’s Michael Hedger, Joe Tynan and James Douglas and JLL’s Jacob Swan, Sam Hatcher and Ned McKendry.
The assets can be sold individually or in one line. No price guide has been disclosed.
Woolworths Dakabin is located 27 kilometres north of the Brisbane CBD, with a fast-growing catchment, with the area experiencing year-on-year population growth of 6.7% over the past decade.
Future population growth is forecasted at 3.25% per annum until 2031.
The 5,590 sqm centre has a 10-year 3,461 sqm anchor lease to Woolworths and liquor chain BWS, the latter now part of Woolworth’s spin-off liquor and hospitality division Endeavour Group.
Opened in late 2020 the centre currently has 15% of its income from medical and allied health tenants.
Woolworths Bannockburn is located 36 kilometres south of the Brisbane CBD, on a 1.44-hectares site that has direct frontage to Beaudesert Beenleigh Road.
Currently, Woolworths occupies 80% of the 4,426 sqm centre, which opened last September, accounting for 70% of the income. It is supported by another eight speciality tenants.
Like Sakabin, the local catchment area is growing, with a 50% population growth rate forecast from now to 2031.
Mr Hedger of CBRE said the campaign is expected to generate significant interest from institutional investors, private buyers and unlisted property funds.
“We are continuing to see strong investor demand in the neighbourhood shopping centre sector, particularly for new assets which are strategically located in South East Queensland residential growth corridors,” Mr Hedger said.
“Based on recent campaigns, it is evident that high net worth investors have been the dominant purchaser group as they target long term income streams and assets like Bannockburn and Dakabin that offer strong investment fundamentals,”
Michael Hedger, CBRE
JLL’s Mr Swan added, “Both centres have been carefully curated to the highest standard by Woolworths Group and have been designed with a clear goal to maximise consumer convenience and accessibility.
“With discretionary spending likely to be affected in the short-term as consumers’ budgets are squeezed from inflationary pressures, demand for defensive, non-discretionary assets will continue to draw the most aggressive capital throughout 2022.”
Jacob Swan, JLL
Expressions of interest for the two centres are now open and close 17 September.
