)
BRISBANE-based property investment group Engage Capital has sold Calliope Shopping Centre in North Queensland in an $18 million deal.
CBRE's Michael Hedger and Nick Willis sold the neighbourhood centre to a private investor.
The 2,193sqm Dawson Highway centre is 20km south-west of Gladstone and offers a 1,562sqm Supa IGA supermarket and 12 specialty stores.
"Calliope Central is the only centre within the main trade area, which is forecast to show extremely strong population growth of over 7 per cent per annum," Hedger says.
"While regional locations such as Calliope have been affected by the slowing mining economy, centres with strong fundamentals and limited competition present attractive yet secure investments."
The off-market deal was arranged on a fund for development plans with tenant IGA set to undergo a 2,422sqm supermarket expansion on a 20 year lease to Drakes Supa IGA. The expansion will also include an additional 697sqm of specialty retail space.
With a current net income of approximately $900,000 the centre's renovation is expected to deliver a fully leased net income of $1,540,000 on completion representing an equal yield of about 8.5 per cent.
Willis says the sale highlighted the growing investor interest in regional shopping centres.
"As yields continue to compress for neighbourhood centres in metropolitan locations we are experiencing a growing interest in regional assets and development opportunities," Willis says.
"Investors are continuing to move up the risk curve in the pursuit for more attractive returns."
)
