A Gold Coast commercial sales duo have pointed to three recent deals as a sign of the retail sector’s upward trajectory.
Adam Grbcic of Kollosche Commercial, who works alongside his father, Tony Grbcic, stated that the commercial real estate industry is in “good health”.
Their own $45.8 million sale of Sunland’s The Lanes Retail Village to Panthera Group capped off a busy October for commercial transactions on the Gold Coast, during a time that also saw Cbus Super and UniSuper take a majority stake in Pacific Fair, and Vicinity Centres buy a half share of Harbour Town.
The Pacific Fair deal carried a price tag of $2.2 billion and included a half share in Sydney’s Macquarie Centre, while Harbour Town’s 50 per cent stake went for $385 million.
According to Mr Grbcic, the three deals are “a massive vote of confidence in the retail sector”, noting that investors are on the lookout to capitalise on opportunities as more and more COVID restrictions are lifted.
“Panthera has correctly identified the Gold Coast can do with an injection of high-quality retail offerings, particularly when underpinned with apartments,” he said.
“We were able to show to Panthera the sector has strong long-term growth prospects, particularly when interstate and international travel opens up”.
Another $32.75 million sale that the Grbcics’ recently transacted within The Lanes community to businessmen Brett Frizelle and Darryl Kelly in early November caps off $113 million in deals they’ve negotiated within the precinct in the past three years.
In Tony Grbcic’s view, solid market fundamentals are underpinning the latest growth cycle.
“This isn’t like the boom-and-bust cycles of the past,” he said.
“Investors who have sold off residential properties are looking to invest their cash in commercial assets that come with high yields in a place which hasn’t been as affected as Sydney and Melbourne with lockdowns.
“All this means is the future prospects are looking excellent.”
According to Tony Grbcic, retail projects, such as The Lanes, are proving to be excellent drivers of residential development activity.
He points to the $32.75 million deal they recently closed at the development that will see 10- and 12-storey apartment buildings cohabitate with the shopping precinct, which is currently under construction and set to be completed by 2024.
“There is massive demand from a range of developers for quality sites from Broadbeach to Coolangatta,” he said.
“This is being driven by a stock shortage and high take-up of new product. Indeed, the supply of off-the-plan product has fallen dramatically, which is why more and more developers are aiming to get into the market.”
ABOUT THE AUTHOR
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.