Fully leased Norfolk Village in Ormeau was purchased by a Melbourne based syndicate group for $9.7 million, reflecting a yield of approximately 7.2 per cent.
Located at 174 Pascoe Road on a 6,161sqm site, the single level neighbourhood centre features a total NLA of 1,481sqm and comprises of 16 specialty tenancy retailers varying in size from 49sqm to 199sqm.
The centre is fully leased with the annual net income of approximately $700,000 generated from a mix of tenants: Subway, Ray White, L.J Hooker, a medical centre, dentist, bakery, newsagent, hairdresser, vet clinic and various fast food outlets and restaurants.
Stewart Gilchrist, National Director of Retail Investments at Colliers International sold the centre off-market on behalf of a Gold Coast based investor.
“Norfolk Village did not suit all investors who enquired due to the short WALE lease terms, however it appealed to the purchaser due to its strong history of being fully leased with fixed annual rent increases.
“The centre is well positioned between the Ormeau Coles Centre, Ormeau Tavern and the local McDonalds complex.
“The adjoining Coles Supermarket has very few specialty tenants so Norfolk Village is effectively seen as a Coles add on.”
The 20 year old centre has 80 metre frontage to Pascoe Road, and features car parking for 92 cars. It is midway between Brisbane and Gold Coast, just off the M1 freeway, and south of Yatala Brewery.