Record demand for sub-regional centres expected to drive strong interest.
Bundaberg shopping centre, Hinkler Central, is being offered to the market by current owners, Mirvac, amidst strong demand for sub-regional shopping centres.
Located in the growing regional centre of Bundaberg in Queensland, Hinkler Central is anchored by two major supermarkets and a discount department store, alongside over 75 other specialty stores. The centre comprises of 20,754sqm of lettable space and includes on-site parking for 1,070 vehicles. The asset is being marketed by Colliers International and McVay Real Estate.
“Demand for sub-regional shopping centres is at an all-time high following a record $2.24 billion worth of transactions in 2014,” said Lachlan MacGillivray, Head of Retail Investment Services at Colliers International. “The pent up demand for quality retail assets has driven investors to seek well-positioned sub-regional centres anchored by non-discretionary retailers. As a modern, well-presented centre, Hinkler Central enjoys exceptional productivity with levels well above Urbis benchmarking, making it highly attractive to investors.
Investment activity in the sub-regional sector has been strong over the past few years with sales worth $2.24 billion from 26 transactions recorded in 2014. This follows strong volumes in 2013, with 31 transactions for a total of $2.09 billion.
“Bundaberg is a market with strong fundamentals,” said Sam McVay of McVay Real Estate. “A solid economy, steady population growth, and the fact that Hinkler is the dominant retail asset in the Bundaberg trade area all contribute to the ongoing strong performance of this centre. We’re expecting strong interest from both local and offshore investors who will find the fundamentals of this asset very attractive.”
Trading of sub-regional shopping centres in Queensland has seen just 10 centres sold over the last two years; seven in 2013 and three in 2014. Sub-regional shopping centres accounted for 34% of all retail sales in 2014, with the value of transactions at record levels.
With current owner, Mirvac, reweighting its portfolio following the recent acquisitions of Harbourside and Birkenhead Point, the asset is coming to market at a time when demand is strong.
“Hinkler Central has proven to be a solid performing asset in our portfolio,” said Susan MacDonald, Group Executive, Retail at Mirvac. “We have been approached by a number of investors with an interest in this asset, so we decided it was the right time to test the market.”
Hinkler Central is being offered to the market via an International Expressions of Interest Campaign, closing on Thursday 16 April 2015 at 2pm (AEST). Further information is available from the agents, Lachlan MacGillivray (0413 053 919) and Stewart Gilchrist (0439 034 042) of Colliers International; and Sam McVay (0402 613 603) and Dan McVay (0412 872 859) of McVay Real Estate.