Gold Coast Retail Asset Changes Hands for $86m

The sale of a landmark Gold Coast retail complex for north of $86 million has topped transactions over the holiday period in the Sunshine State.

McVay Real Estate brokered the $86.6 million sale of Gold Coast’s Queen Street Village retail complex to Wingate Group and Shore Financial, achieving a 7.05 per cent net passing yield.

The sale represents a significant milestone for the precinct, which has faced considerable challenges since its inception as a $500-million masterplanned project.

The 13,071sq m centre occupies part of the 19,067sq m former Gold Coast Hospital site at Southport.

According to media, vendor Chauvel Capital acquired the property mid-construction in 2022 for $44.3 million from administrators of Property Solutions after the original developer, Nerang Street Pty Ltd, entered administration owing more than $80 million to creditors.

Anchored by an IGA Supermarket and Dendy Cinemas, the completed centre comprises 31 retail tenancies with a weighted average lease expiry of 9.4 years and maintains a 5.6 per cent vacancy rate.

The complex includes 368 car spaces, with the transaction including airspace rights through a volumetric title above the supermarket suitable for a 20-storey residential development.

The purchasers plan to hold the asset in a recently closed trust, with an exit strategy targeting $120-130 million within four years.

▲ The Queen Street Village Mall is part of a masterplan completed in 2021.

The site’s catchment of 141,000 people is projected to grow by 4 per cent annually until 2041.

Three adjoining development lots within the broader Queen Street Village precinct, totalling 5400sq m, are being marketed via Colliers International in 2022.

The sites hold preliminary approvals until March, 2026 for a 12-storey apartment building, a 160-room hotel, and a 480-bed purpose-built student accommodation facility.

Also in Queensland, ASX-listed Peet Limited has partnered with Brown-Neaves Investments (BNI) to acquire a 33.1ha development site on the Sunshine Coast for $56 million.

▲ The 33.1ha site adjoin Peet’s Village Green estate.

The site at Palmview, about 95km north of Brisbane, adjoins Peet’s Village Green estate and is projected to yield 470 homes over five years from 2026, subject to market conditions.

The agreement remains conditional on subdivision and titling from the parent lot, with settlement expected between June and September of this year.