A local private Asian investor has purchased a new fully leased 1,578 square metre shopping centre anchored by IGA for $13,459,805, reflecting strong demand for essential service assets.
Transacted through a targeted off-market process by Colliers Queensland agents Nick Wedge, Sam Polichronis, Harry Dever and Nick Dowling on behalf of Flux Property Group, Dockside Village is located at 1 The Basin, Pelican Waters on the Sunshine Coast, QLD.
Dockside Village is a retail and lifestyle destination located next to the new Pelican Waters Marina, which has opened with tenants including IGA Supermarket, Cellarbrations, and Sushi Ari.
Colliers Queensland investment services director, Nick Wedge said Colliers conducted an off-market process targeting 10 high net worth private investors.
“We saw a high level of engagement, with the successful purchaser being a local private Asian investor who was looking for a defensive asset with future potential. With 95% of income from the asset anchored by national tenants and a 15-year lease with IGA with options until 2049 securing 80% of the centre’s gross rental income, this was a solid investment,” he said.
Colliers Queensland retail middle markets associate director, Harry Dever added, “Dockside Village sets a new benchmark with the sharpest yield achieved for a QLD IGA anchored centre in the last 12 months and sharpest yield achieved for an IGA anchored centre on the Sunshine Coast for the last 24 months.”
Colliers Sunshine Coast managing director, Nick Dowling said the shopping centre was purpose built to service the growing catchment.
“This is the second off-market shopping centre transaction by Colliers within the past few weeks, with Nambour Central sold off-market to an interstate first time shopping centre investor in late June. These transactions demonstrate significant investor demand for strong performing assets on the Sunshine Coast,” he said.
“Featuring only three tenants, offering a minimal management proposition with 47 car park spaces and excellently positioned alongside the Pelican Waters Marina, it was a great offering.”
According to Colliers Queensland investment services executive, Sam Polichronis, this investment offered exceptional income security being 100% leased with a long-combined WALE of 14.12 years by area.
“Assets that offer essential services are more resilient to economic conditions, making them a less risky investment with a reliable income source and capital growth potential, making them a popular choice among investors,” he said.