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High Retail Demand Sees Caboolture Square Sell

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Caboolture Square in Brisbane’s north has sold for over $27 million in a transaction negotiated by JLL’s Jacob Swan and Sam Hatcher.

Recently refurbished, the centre was purchased by Alceon Group. The sale represents a passing initial yield of 7.38 per cent for the vendor, the Charter Hall Retail REIT.

Sub-regional shopping centres remain a very actively traded part of the Australian retail market, according to JLL Director of Retail Investments Sam Hatcher.

“Sub-regional centres have had the highest transaction volumes nationally of any retail sub-sector in 2016,” he said.

“Year to date, volumes are at $1.48 billion nationally with Queensland contributing $450 million to that figure.

“There have been no transactions of Regional Centres in Australia since 2014, which has contributed to the competition for sub-regionals.”

He said REITs continued to capitalise on the strong retail conditions by recycling capital into new acquisition and development opportunities.

“We are seeing ongoing demand from a range of investors for value-add investments that have leasing and development potential,” he said.

“Investors are pursing value-add assets due to the attractive yield premium available relative to core assets.”

Caboolture Square is a multi-level centre based in the business and administration precinct of the Moreton Bay Council Local Government area (LGA).  The Centre is located on King Street, the main thoroughfare in Caboolture and is an example of a thriving sub regional centre positioned in one of South East Queensland’s main growth corridor.

The Centre is anchored by Coles Supermarket and Kmart Discount Department Store and supported by 1 mini-major, 35 specialties, five ATM’s, one kiosk, five office tenancies and nine complementary non-retail tenants, encompassing a total GLA of 16,253 square metres.

Mr Hatcher said the comprehensive mall upgrade and refurbishment of Coles and Kmart contributed to a strong growth in the MAT for the two major tenants.

“The annual turnover for Coles and Kmart in the centre has increased by 2.3% and 12.6% respectively, over the annual period ending May 2016,” he said.

 

Originally Published At: https://www.theurbandeveloper.com

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Commercial Property

Queensland Economic Outlook ‘Positive’: Deloitte

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Queensland Economic Outlook

Construction and development appeared healthy to Deloitte’s analysts, who attributed some of Queensland’s strong economic outlook to high levels of interstate migration and international tourism, which have encouraged a growing list of tourism-related construction projects.

Queensland’s international tourist arrivals are expected to remain solid over the forecast period, averaging growth of 4.7 percent out to 2021.

There were reasonable gains in engineering activity in Queensland, and Cross River Rail was in the planning stages.

The report also put a focus on livability and housing affordability. In the midst of the continuing debate over house prices and quality of living, Deloitte reported that Queensland has less cause for concern.

Queensland’s place in the national picture of housing affordability is a comparative advantage. In the midst of a housing price boom, living in Queensland remains more affordable than in the southern states.

While Sydney and Melbourne house prices have experienced year-on year growth in the double digits, Brisbane has experienced a modest 3.5 per cent growth.”

Despite this optimism, Queensland was revealed to be mirroring the national trend, showing a slight decline in outright home ownership and owners who have a mortgage.

Rental stress was recorded to be higher than the national average, with more Queenslanders renting than owning their own home compared to the rest of the country.

“But with a modest decline in rent in the June quarter CPI figures, increasing vacancy rates, and new supply from an easing residential construction boom the conditions could result in Brisbane becoming a renter’s market,” Deloitte said.

Job growth was accelerating in Queensland and while population growth had “bottomed”, it was now back in line with the national average — although it remained below the level experienced in the state five years ago.

In less positive news, CommSec’s latest State of the States report found Queensland’s economic performance had slipped to sixth place, hampered by weak business investment and retail spending.

CommSec chief economist Craig James said that despite a recent surge in residential construction, oversupply is still a concern. Queensland would benefit from increased revenue generated by the state’s gas industry as well as spending that resulted from a rise in employment.

Queensland Treasurer Curtis Pitt defended the state’s ranking saying that the CommSec report understated the state’s performance.

“Most people’s economic indicator is whether they have a job or not and both the DAE and CommSec reports highlight our strong performance in job creation,” Pitt said.

Of Queensland’s population of 4.7 million, more than half were recorded to be living outside of the state’s capital city. Queensland’s south-east corner, including Brisbane, Gold Coast, and Sunshine Coast, saw a growth rate in population twice that of the rest of the state.

Despite Queensland’s size, urbanization has taken hold — 66 percent of the population living within 0.6 percent of Queensland’s total area.

Originally Published: brisbaneinvestor.com.au

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Commercial Property

Elanor Investors Acquire Redcliffe Shopping Centre For $55 Million

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Elanor Investors Group new managed fund, the Bluewater Square Syndicate, has acquired a shopping centre in the Brisbane suburb of Redcliffe for $55.25 million with a two year rental guarantee on vacancies.

Elanor chief executive Glenn Willis said there was significant opportunity to expand the shopping centre and retail options in Redcliffe, as the property has a favourable zoning and 27 metre height limit across the majority of the 1.356 hectare site.

“Following the announcement of the establishment of the Elanor Metro and Prime Regional Hotel Fund on 21 August 2017, the establishment of Bluewater Square Syndicate takes ENN’s owned and managed portfolio of assets to approximately $990 million.

“This is expected to exceed $1 billion dollars following ENN’s co-investment in each of these new managed funds.” Willis said.

Constructed in 2008, Bluewater Square is a 10,004 square metre neighbourhood shopping centre in an increasingly densifying precinct within the Brisbane metropolitan area — 20km from the Brisbane International Airport and 30km from the Brisbane CBD.

The centre is anchored by a 3,941 square metre full-line Woolworths supermarket leased to September 2028. The centre’s sales are growing at 3 per cent per annum with a weighted average lease expiry of 6.0 years.

The Woolworths supermarket is complemented by two mini majors — Healthworks Gym and a large Terry White Chemist — and over 30 specialty retailers predominantly focussed on providing services and non-discretionary focussed food offerings. An upper level of office suites is tenanted by three law firms, a medical practice and the Redcliffe Electoral Office.

The acquisition of Bluewater Square represents a passing yield of 7.0 per cent which compares favourably to prevailing Brisbane Neighbourhood shopping centre yields.

“Bluewater Square is a modern shopping centre generating stable cash flows by providing convenient access to everyday goods and services for its local trade area,” Elanor head of office real estate Michael Baliva said.

“The Bluewater Square Syndicate provides its investors with strong income returns and significant opportunities for capital growth,” he said.

Settlement of Bluewater Square is expected to occur in October 2017.

Originally Published: www.theurbandeveloper.com

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Commercial Property

New Industrial Land Release Hits Market

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First major industrial estate in Caboolture in 10 years

In what is one of the most anticipated land releases to hit the industrial market, official marketing commenced this week on Corporate Park East, located between Brisbane and the Sunshine Coast at Caboolture.  The new 76ha integrated estate is expected to help satisfy the increasing logistics requirements of companies looking to service the northern growth corridor.

“The success of North Lakes and the residential construction activity being generated by Caloundra South and other major projects in the area has changed the perception of Caboolture among the national companies” said marketing agent Chris Massie of Ray White Commercial. “It has become clear that this will be the centre of growth in the region for the next twenty years and the bigger players are starting to position themselves accordingly”

Stage 1 is due for completion in May of next year, with tenants and owner occupiers expected to move in to the first new buildings before Christmas.  Land sizes start at 2,000m2 and can accommodate up to 20 hectare requirements.

If you would like more information emailed or to arrange a site inspection, please contact Jennifer Swaine at Ray White Commercial North Coast Central or email at Jennifer.swaine@raywhite.com

 

Originally Published: https://www.theurbandeveloper.com/

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