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A shopping complex in the Queensland city of Logan has achieved one of the state’s biggest retail transactions.
Park Ridge Town Centre, a neighbourhood shopping centre that boasts long-term tenancies of both Woolworths and Coles, has been sold to a private investor for $86 million.
Located in the “Brisbane growth corridor” just a half hour from the state capital, the centre sits alongside the Mount Lindesay Highway. Fully leased, with a weighted average lease expiry of 8.13 years, it contains 31 specialty tenancies alongside the major grocers, together with KFC and Ampol pad sites.
The deal was brokered by Savills on behalf of Perth-based private investor RG Property.
Having bought the property in 2012, the syndicate undertook substantial development on the lot to boost its return.
Originally anchored by the Woolworths tenancy, the site was further developed in 2016 to expand the footprint of the original grocery store and accommodate a second, now occupied by Coles, as well as additional retail offerings, fast food and fuel sites.
Savills noted that the deal illustrated the “ongoing appeal of assets underwritten by non-discretionary retail”, with the lot attracting close to 200 buyer inquiries.
A spokesperson for RG Property noted that the sale marked both a success for the group as well as its conclusion.
“We were pleased to deliver a strong result for investors as this syndicate comes to an end. We have been able to deliver robust cash flows as well as strong capital growth over the life of this investment.”
Peter Tyson, national director of Savills Australia who brokered the deal alongside Steven Lerche, remarked that interest had been diverse for an asset of this quality.
“The centre attracted enquiries from a wide buyer pool, including local, interstate and offshore investors,” he said.
Mr Tyson commented that the presence of two of the country’s most recognised brands – and the dominant forces in food retail – had lent the property a level of stability that is hard to come by.
“As a dual supermarket anchored centre, Park Ridge Town Centre is unique in today’s marketplace. Invariably, neighbourhood shopping centres feature single supermarkets. The scale and dominance of this high-performing centre relative to its peers was obvious.”
Mr Lerche added that 55 per cent of the centre’s income stream was underpinned by Woolworths and Coles.
ABOUT THE AUTHOR
Juliet Helmke
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.
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