In brief: Chinchilla Woolworths tops $20m
A Melbourne-based private investor has acquired the Woolworths Chinchilla shopping centre in Queensland’s western downs region for more than $20 million.
The buyer paid $20.055 million for the 3878sqm centre in the regional hub, about 250km west of Brisbane, on a yield of 6.38%.
The centre is anchored by a 2808sqm Woolworths supermarket and sits on a 9002sqm site with 177 car spaces. Its other major tenant is The Reject Shop and it is also home to four specialty stores, an ATM and a kiosk.
The buyer is understood to have a property portfolio that includes other retail assets in Queensland.
CBRE’s Michael Hedger and Joe Tynan facilitated the deal on behalf of the property’s Queensland owners, with Hedger pointing to unprecedented demand for neighbourhood shopping centres.
“With interest rates at an all-time low, investors are increasingly looking at alternatives to low yielding investments such as term deposits,” he says.
“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.”
Sydney: Doughnut Time fills hole in Manly
Fancy donut purveyors Doughnut Time have continued their strategy of leasing tiny retail spaces, this time signing a five-year lease on a hole-in-the-wall shop on The Corso in Manly.
Doughnut Time has leased the property, which includes a 40sqm retail space and 24sqm basement car park, for $125,000 per annum.
CBRE’s Tony Silk negotiated the deal on behalf of private owner Nick Nicolaou, and says the property enjoys significant passing foot traffic.
Doughnut Time has opened its newest store on The Corso in Manly.
“The Corso is one of the most desirable locations for retailers and eateries on Sydney’s North Shore, capitalising on the some eight million visitors that travel to Manly each year,” he says.
“Doughnut Time saw Manly as a strategic location to expand its growing business, with the area heralded as one of Australia’s top tourism destinations.”
Melbourne: Golf comes to Lonsdale St
Some of the world’s premier golf courses will take up residence in Melbourne’s CBD, after golf simulator operator 24/7 Golf leased a space on Lonsdale St.
24/7 trumped a number of potential office tenants for the 130sqm space on Level 2 at 115 Lonsdale St, which offers direct access from the street and high ceilings.
24/7 Golf will open its second venue at 115 Lonsdale St in Melbourne’s CBD.
Fitzroys sales and leasing executive Stephen Land negotiated the five-year deal within the three-storey building for $55,000 annually.
“The premises generated a large amount of enquiry from office tenants, illustrating the high demand for character space of this size and with quality furnishings, offering a turn-key opportunity,” Land says.
New South Wales: Sentinel sells Wellington shopping centre
Sentinel Property Group continues to shed shopping centres from its portfolio, with the sale of a Coles-anchored centre in Wellington in New South Wales the latest in a long line of divestments.
Sentinel bought the asset from Charter Hall Retail REIT just 16 months ago as part of a portfolio that also included shopping centres in Bathurst and Narromine.
The fully-leased property sold this time around for $3.6 million and comes after Sentinel also sold the Narramine centre in July for $4.18 million.
Sentinel Property Group sold a Wellington shopping centre just 16 months after buying it.
Sentinel managing director Warren Ebert says the company has identified neighbourhood shopping centres as a significant investment and divestment opportunity.
“Well-located shopping centres in strategic regional hubs and anchored by major supermarket chains are emerging as one of the most highly sought-after of all retail asset classes,” he says.
“There is currently limited availability of this style of property, which is intensifying demand from a wide range of buyers.
Melbourne: Glen Waverley development site fetches $6.25m
It was second time lucky for a commercial in-fill site in Glen Waverley, in Melbourne’s east, which sold prior to auction for $6.25 million.
The site at 50 Montclair Ave, which has the potential for a six to 10-storey mixed-use development, sold at auction last year for a record price for its precinct of $5.5 million, but the owner was not prepared to settle and chose to re-list the property this year.
Ray White Commercial Glen Waverley’s Ryan Trickey and Ben Ainsworth negotiated the deal on behalf of the property’s private owners.
The Glen Waverley site was sold for $6.25 million prior to auction.
Trickey says the vendor achieved a significant premium for the 810sqm site by electing not to sell it the first time around.
“Our vendors were still keen to sell and an auction process was established and created some keen competition,” he says.
“The previous sale in 2015 failed to proceed to settlement at the buyers’ discretion. The new result was a sale of $6.25 million achieved before the proposed auction day.”
Melbourne: Prahran industrial sells on tiny 1.6% yield
The recent rezoning of a Prahran industrial property saw its price at auction soar $550,000 above its reserve and drove the yield down to one of the lowest seen in Melbourne this year.
The property at 11-13 Regent St sold for $2 million as four bidders fought for the right to potentially redevelop the site, after it was rezoned as Commercial 1 and offered for sale for the first time in more than 40 years.
It comprises a single-level, 210sqm office and warehouse on a 245sqm site with 14m of street frontage. It was sold subject to a short-term lease, currently set at $32,096 per annum.
The Prahran warehouse and office sold for $2 million.
Teska Carson’s George Takis marketed the property in conjunction with Barry Novy, and says the location spoke for itself amongst potential buyers.
“Prahran has fast become one of Melbourne’s most desirable inner city locations attracting numerous commercial and residential developments and that has been largely driven by its location,” Takis says.
“Add location to the Commercial 1 zoning, which opened up a plethora of new options for the purchaser, obviously including redevelopment, and you have a property that appealed to a lot of buyers.”
Brisbane: Aldi and Coles a part of Arana Hills offering
A sub-regional shopping centre featuring Aldi and Coles supermarkets and a Kmart outlet has come to market in Brisbane.
Arana Hills Plaza has been offered up for sale by unlisted property funds manager ISPT amid booming demand for sub-regional retail assets.
The 14,355sqm centre is situated on a 5.61ha site just 10km north-west of Brisbane’s CBD, and includes long-term leases to Coles, Aldi and Kmart that expire between 2023 and 2031. It also has 23 specialty stores, four kiosks, two ATMs and a freestanding Shell petrol station.
Arana Hills Plaza presents a rare opportunity in Brisbane’s retail market.
JLL has been appointed to sell the property, with Australasian head of retail investments Simon Rooney saying a lack of available stock is seeing pent-up demand for retail properties.
“Sourcing retail assets within capital city metropolitan areas is challenging at present, particularly for sub-regional centres,” he says.
“There have been only five sub-regional centres sold in the Brisbane metropolitan area in the last five years, highlighting the limited stock in this asset class.”
