Kerching sounds again in Queensland shopping centre market

Perth syndicate Kerching Capital has picked up its third IGA-anchored shopping centre in Queensland, buying Sandstone Village for $10.4 million.

The 2289sqm neighbourhood shopping centre, in the Brisbane suburb of Sandstone Point, sold on a yield of around 7%. It is anchored by a Supa IGA and is also home to a medical practice and other national retailers.

CBRE’s Nick Willis and Michael Hedger brokered the deal on behalf of investment syndicator Properties and Pathways.

Properties and Pathways director Cal Doggett says the divestment of Sandstone Point comes as the company steers itself towards large format retail.

This sale … marks the third IGA-anchored neighbourhood shopping centre that Kerching Capital has now acquired

“The sale … supports a strong focus to build momentum in the large format retail space following our two most recent bulky goods acquisitions on the eastern seaboard and to leverage our membership to the Large Format Retailers Association earlier this year,” Doggett says.

Hedger says Kerching Capital is continuing to seek out IGA-tenanted retail investments within the Queensland market.

“This sale … marks the third IGA-anchored neighbourhood shopping centre that Kerching Capital has now acquired via the CBRE Retail Investments team, in addition to Calliope Shopping Centre in 2015 for approximately $20 million,” Hedger says.