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A suburban Brisbane shopping centre has sold to a Chinese investor for $23.3 million on a net yield of 6.95 per cent.
Marketplace Deagon Shopping Centre at 55-75 Braun Street Deagon is a fully-leased modern neighbourhood centre anchored by an IGA supermarket. The centre sits on a 14,070sq m site with a lettable area of 6,004 square metres. The lettable rate is $3,881 per square metre.
The deal was brokered by Savills’ Jon Tyson, Michael Harcourt and Peter Tyson. The agents expected the centre to attract strong investor interest given the ongoing demand for the attractive neighbourhood centre asset class.
Related reading: Record Yields for NSW Neighbourhood Shopping Centres
Deagon is located 16km north of Brisbane’s CBD and sits behind the bayside suburbs of Sandgate and Shorncliffe overlooking Moreton Bay. The suburb has been popular with first home buyers and young families in recent years due to its comparative affordability.
Neighbourhood and sub-regional centre vacancy rates have been relatively stable since 2009, with only minor fluctuations. Recent research from JLL notes that centre owners are taking a proactive approach to retailer engagement strategies to ensure occupancy rates are maintained in face of changes in the retail industry.
Quality neighbourhood shopping centres have been in demand in city areas and also regionally. Last week, AM Australia Retail Property Fund acquired the Springfield Fair neighbourhood shopping centre from Charter Hall Retail REIT for $23.5 million on a yield of 7.05 per cent.
