Perth-based property syndicator Kerching Capital has realised $12.6 million from the sale of the Sandstone Point Village neighbourhood centre in Brisbane’s north.
CBRE’s Michael Hedger and Joe Tynan negotiated the sale following a competitive expressions of interest campaign that generated strong pricing compared to pre-COVID levels. A private investor ultimately acquired the Sandstone Point property on an initial yield of circa 6.5%.
“In the current environment of low cash returns and cheap lending, we’re fielding strong interest in securely leased retail assets, however few quality properties are coming to market,” said Tynan.
“We continue to see strong demand for well-located neighbourhood shopping centres, particularly those that have traded well through the COVID period. Centres that offer a long WALE and demonstrate resilient income profiles are transacting at a premium,” added Hedger.
He noted that sale of Sandstone Point Village has highlighted the depth of the investment market, with eight genuine bids received.
The property has a gross lettable area of 2,289m2 and is anchored by a strongly-trading IGA supermarket and a medical centre and pharmacy, which occupied more than 65% of the income. The centre also comprises seven specialty stores, including BWS. Other tenants include a dentist, pharmacy and medical centre, providing a WALE of 5.8 years.
Hedger noted that the property’s growing catchment area and future development potential had also helped draw buyer interest.
Sandstone Point is situated in the growing Moreton Bay region, approximately 2km south of Bribie Island, 15km east of Caboolture, and 42km northeast of the Brisbane CBD.