The Mackay West Shopping Centre has changed hands for $10.4 million in a sign of ongoing demand for convenience focused retail assets.
CBRE’s Michael Hedger and Joe Tynan negotiated the sale of the North Queensland property to a Brisbane-based private investor. The result, which translates to an initial yield of 6.75%, reflects the strong trading performance of the 331 Bridge Road property, which is anchored by a SUPA IGA supermarket.
“The property was sold off market following a direct approach from an investor seeking an IGA secured retail investment,” said Hedger.
“In the current low interest rate environment, we’re fielding strong demand for retail assets that offer a resilient income profile and have strong investment fundamentals. However, a limited number of quality properties are formally available”, he said.
“Regional locations with exposure to major surrounding infrastructure projects are attracting investors’ interest and this is converting to strong pricing outcomes for non-discretionary based retail assets,” added Tynan. “This has been further evidenced by CBRE’s recent sale of Stockland Northshore in Townsville.”
The Mackay West Shopping Centre is anchored by SUPA IGA on a 20-year lease, representing more than 80% of the gross floor area. The property includes four speciality stores, including BWS and Sullivan Nicolaides. It offers a 9.78-year WALE and a large land holding of 9,227m2 in Mackay’s central activity precinct.