Brisbane's neighbourhood centre sells on yield of 6.95 per cent
Melbourne investor James Zhang has bought Marketplace Deagon, a neighbourhood shopping centre in Brisbane’s northern suburbs for $23.3 million.
Mr Zhang’s Bao Li Hai International Investment Pty Ltd acquired the 2374 square metre mall at 55 Braun Street, anchored by a Prince’s Supa IGA supermarket and five mini-majors including The Reject Shop, on a yield of 6.95 per cent.
The vendors were Baradel Investments, led by early Brisbane Roar investors Serge and Claude Baradel and Bourse Pty Ltd, led by Queensland developers John Papas and Philip Rhodes.
The sale follows the recent acquisition of the Coles-anchored Springfield Fair neighbourhood mall south of Brisbane by fund manager Real Asset Management from ASX-listed Charter Hall Retail REIT for $23.5 million on a yield of 7.1 per cent.
Neighbourhood centres, usually anchored by a major supermarket and with little exposure to fashion and apparel, are considered better insulated against the rise of online shopping and remain popular among private investors.
Marketplace Deagon was first put up for sale since August 2016. It sold recently through Peter Tyson of Savills and Stewart Gilchrist of Colliers International
“The centre’s attractive price point was enhanced by the strong anchor tenant profile, long weighted average lease term profile of over 11 years, recent supermarket and centre upgrade works and relative ease of management,” Mr Tyson said.
“The fully-leased centre presented quite a unique offering as it is not only anchored by a major supermarket, but also a strong line-up of five mini-major drawcards, all of which are major traffic generators.”
Other tenants in the mall include Good Price Pharmacy Warehouse, Healthworks Fitness Centre, Mater Pathology, BWS, Subway, Pizza Capers and Rackley Swim School.
“The combination of the centre’s location and overall security of income was attractive to a broad range of investors, and the strong sale result continues the high level of transactional activity in the sought-after neighbourhood shopping centre asset class,” Mr Tyson said.
