In yet another example of the market’s attraction to neighbourhood shopping centres, the Kallangur Fair Shopping Centre in Brisbane’s outer northern suburb of Kallangur has transacted for $22.45 million.
Savills’ Peter Tyson and Jon Tyson negotiated the sale of the Woolworths anchored neighbourhood centre on behalf of an off-shore investor to Sydney based Ganellen Asset Management at a passing yield of 5.9% following a competitive Expressions of Interest process.
Peter Tyson said, “Continued deep investor demand for retail assets generated strong interest from the market. The sale process generated multiple offers from local and offshore buyer groups, including private investors, syndicators and fund managers. The centre was ultimately acquired by a Sydney based consortium of private investors”.
Managing Director of Ganellen Real Estate Asset Management, Richard Manning commented “Ganellen Asset Management is delighted to advise we have successfully achieved the acquisition of Kallangur Fair in metro Brisbane on behalf of its investors.”
“This is a prime neighbourhood shopping centre that is anchored by a dominant full-line Woolworths Supermarket and complemented by strong non-discretionary specialty tenants. Ganellen Asset Management is Investment Manager of the Fund. Ganellen Property Management will manage the property, extending its portfolio beyond Sydney, Canberra and Auckland to now include the 2032 Olympic city, Brisbane.”
Kallangur Fair, located in Brisbane’s outer northern suburb of Kallangur, comprises an enclosed mall featuring a 3,247m2 Woolworths supermarket, a discount variety mini-major and 10 specialties with a total GLA of 4,703m2.
Originally developed in 1993, the centre is situated on Kallangur’s main thoroughfare, Anzac Avenue on a 15,8002 site and features parking for 270 cars.
Jon Tyson said, “Kallangur Fair was extensively refurbished in 2017 and provided a weighted average lease expiry of around 4.6 years by income at the time of sale.”
Mount Isa Woolworths fetches $16.91 million in a deal also brokered by Savills. The 4,441m2 standalone supermarket is situated in Mount Isa’s city centre with three street frontages on a 5,084m2 site and features open and under-croft parking for about 80 cars.
Strong performing retail assets in regional locations remains popular amongst investors, with SCA Property Group investing in Mount Isa, beating a field of 10 rival bidders to purchase the Coles and Kmart anchored Mount Isa Village sub-regional centre from ISPT for $44.2million in April 2021.