A MELBOURNE-based private investor has bought the Woolworths Chinchilla shopping centre in Queensland's Western Downs region in a deal valued at $20,055,000.
Michael Hedger and Joe Tynan of CBRE's Queensland Retail Investments team negotiated the sale on behalf of a Brisbane-based private owner.
The fully leased centre has a gross lettable area of 3,878qm and is anchored by a 2,808sqm Woolworths supermarket. The yield was 6.38 per cent, reflecting $5,171 per square metre.
"With interest rates at an all-time low, investors are increasingly looking at alternatives to low yielding investments such as term deposits. This is driving demand for smaller neighbourhood and supermarket-based retail centres which are less management intensive and offer long weighted average lease expiry profiles," says Hedger.
The other major tenant is The Reject Shop, alongside four complementary specialty stores, an ATM and a kiosk. The centre occupies a 9,002sqm site, which provides for 177 car spaces.
Tynan says the expressions of interest campaign attracted more than 70 enquiries and multiple offers at the close. The purchaser is experienced in the ownership of shopping centres with existing retail interests in Queensland.
Chinchilla, which produces around 25 per cent of Australia's melons, is located around 160 km north-west of Toowoomba and 250 km north-west of the Brisbane CBD. The centre's main trade area stretches more than 80km.
"The fact that 88% of the centre's gross lettable area is leased to ASX listed retail companies - Woolworths and The Reject Shop - was a key attraction for buyers, providing a high level of income security," says Tynan.
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