The off market transaction was managed by Michael Harcourt and Jon Tyson of Savills Retail Investments and is understood to reflect a sub 6% passing yield.
The centre is located on Anzac Avenue, Redcliffe’s major traffic route, and comprises a single level convenience centre anchored by an IGA supermarket of 800 square metres and nine speciality tenancies.
Mr Harcourt said, “The sale was made quietly on the basis of a specific buyer requirement.”
“It was a strong result for the vendor in a market that has had limited on market opportunities for similar product,” Mr Harcourt said.
The buyer was attracted to the centre’s diversified mix of convenience tenants and solid lease expiry profile, said Jon Tyson.
Mr Tyson went on to say, “We continue to experience strong demand from local and off-shore private investors for retail centres in the convenience and neighbourhood sub-sectors with significant appetite in the $5 million to $30 million price band. Investors are attracted to the diverse range of tenants, underpinned by convenience or full line supermarkets and non-discretionary food and service based specialty traders.”
Mr Harcourt also commented, “The recent reduction in real interest rates has encouraged investors to focus further on property as the yield spread between return and cost of debt continues to improve. We are now seeing the cost of debt at absolute historical low levels.”
The transaction follows the recent sale of the nearby Redcliffe Tavern and Liquor Super Store for $14.5 million also negotiated by Savills.