SEQ Growth Corridor Retail on the Rise in Sales Blitz

Griffith Group has offloaded five freestanding retail assets at Ripley Central in the South-East Queensland growth corridor. 

The combined deal netted $26.1 million on a blended yield of 5.45 per cent, according to Stonebridge’s Tom Moreland. 

The mixed-use development, developed by Griffith Group, is a retail and services precinct anchored by brands including Starbucks, 7-Eleven, Subway and Bottlemart. Ripley is about 43km south-west of Brisbane by road.

Moreland said the retail offering attracted significant investor interest nationally and was sold via a national portfolio auction and expressions-of-interest process. 

The transactions included Starbucks Ripley, which sold for $5.5 million on a 4.59 per cent yield, Strip Retail Centre Ripley, which netted $6.17 million on a 5.49 per cent yield, 7-Eleven and Subway which received eight offers and sold for $8.15 million on a 5.63 per cent yield, and Swim Factory and Sparkletown Car Wash lots, which sold for about $6.1 million. 

Moreland said there were more than 400 enquiries for the five lots. 

“It demonstrates the high level of demand for quality freestanding retail investments, particularly those which are newly built, possess long-term lease fundamentals and positioned in major growth locations such as Ripley,” he said.

“It’s one of Queensland’s largest urban growth corridors.”

Stonebridge’s Harry Curtain said buyer sentiment had been very strong against a backdrop of limited new supply.

He said fuel, convenience retail, fast food and large format retail had all been performing well. 

▲ The development site at Flagstone comes with development approval for a mixed-use retail project in the growing region.

Meanwhile, further south, a 2.033ha development site at the entrance to Flagstone Town Centre is on the market. 

The site would deliver the community’s first mixed-use retail project for the fast-growing region.

The development site at the corner of Parkland and Flagstonian Drive in the City of Logan has approval for a staged scheme for a retail-focused centre of the emerging Flagstone City. 

The site is set across two lots, Lot A is a 9525sq m site, and Lot B comprises 10,804 square metres. 

JLL’s Liam Cox, Jake Burrowes and Ned McKendry were appointed to manage the sale with CBRE’s John Nucifora, Will Carman and Harrison Coburn.

JLL’s Liam Cox said the retail fundamentals were compelling for the Greater Flagstone Priority Development Area, which he said was one of the largest designated growth areas in Australia.

“The future population is expected to reach 138,000 people by 2050 and an estimated 51,500 new homes are planned for the surrounding area,” he said.

“Flagstone City itself is set to evolve into a vibrant hub with retail laneways, entertainment precincts, business and health centres, and residential communities.

“This is an opportunity to establish the first mixed-use retail development in the town centre and lay the foundations of the city’s retail core.”

Flagstone’s retail spending is estimated at $849.6 million and is projected to grow to $4.9 billion by 2046.