Woolworths anchored Reedy Creek Village Shopping Centre, located on the southern end of Gold Coast, has sold for $20.5 million to a local Asian investor on an aggressive yield of 5.9 per cent.
The sale was conducted by Stewart Gilchrist of Colliers International, together with Nigel Smith of Burgess Rawson and Leonne Smith of Smith Commercial.
Supporting the strong performing Woolworths are six specialities including BWS, Zarraffas, Goldsteins bakery, a medical centre, hair salon, sushi bar and an ATM.
Mr Gilchrist who promoted the centre off market on behalf of a Gold Coast family developer, said a number of factors contributed to the record low yield.
“The centre is located in a fast growing neighbourhood and is 83 per cent occupied by Woolworths on a long term lease, until 2031.
“The yield on the sale was a crisp 5.9 per cent, reflecting the strong demand for supermarket based retail investments, especially where they are relatively new and contain long term covenants.
“There is still a very strong level of demand for shopping centres which is likely to continue given the ongoing sentiment of lower interest rates.
“Construction of new centres is rare with development projects very limited throughout Queensland. The demand is outpacing the supply, with not enough centres available on market for investment.”
Reedy Creek Village is located on Old Coach Road in Reedy Creek opposite the M1 Highway, on a 1.22ha site and features 3,279sqm of net lettable space with 192 car spaces.