)
WOOLWORTHS-anchored Reedy Creek Village Shopping Centre has sold for $20.5 million to a local investor on an yield of 5.9 per cent.
The sale was conducted by Stewart Gilchrist of Colliers International, together with Nigel Smith of Burgess Rawson and Leonie Smith of Smith Commercial.
The buyer was a family, with members based both on the Gold Coast and in Asia.
Gilchrist, who promoted the centre off market on behalf of a Gold Coast family developer, said a number of factors contributed to the yield.
"The yield on the sale was a crisp 5.9 per cent, reflecting the strong demand for supermarket based retail investments, especially where they are relatively new and contain long term covenants.
"Construction of new centres is rare with development projects very limited throughout Queensland. The demand is outpacing the supply, with not enough centres available on market for investment."
According to JLL's Australian Shopping Centre Investment Review and Outlook, released in February, the yield range for sub-regional centres in Australia was wide, at between 5.75 and 8.75 per cent and is on a downward trend.
"Transaction evidence that emerged between September and December 2015 showed sub-regional yields of between 5.75 per cent and 6.25 per cent, confirming a downward shift in yields for premium and mid-tier sub-regional centres," says the report.
Enjoyed this article?
Don't miss out on the knowledge and insights to be gained from our daily news and features.
Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.
Support independent journalism and stay informed with stories that matter to you.
)
)
)
)
)
