ClickCease $11m sale of The Hub Westlake shows resilience of convenience retail - RAM
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$11m sale of The Hub Westlake shows resilience of convenience retail

This article originally appeared in retailbiz.

The Hub Westlake, a convenience-based retail shopping centre anchored by SPAR, six specialties and a swim school has been transacted off-market by Colliers Retail Middle Markets associate director for QLD, Harry Dever, who sold the Brisbane metropolitan neighbourhood shopping centre to a private investor, highlighting ongoing demand for assets underwritten by non-discretionary retail.

Real Asset Management (RAM) Group purchased the centre in 2018 for $10,075,000 and has transacted at $11,460,000 representing a 14% increase in just five years.

RAM executive director and head of real estate, Matthew Strotton commented, “The sale of The Hub Westlake at book value demonstrates the resilience of well-positioned essential services retail property assets.”

Colliers QLD expert, Harry Dever (above) leveraged the National Retail Middle Markets platform, led by James Wilson, to secure a high net worth Sydney based investor via an off-market expressions-of-interest campaign.

“Metro convenience retail centres underpinned by long WALE and national covenants remain highly sought after by local and interstate private investors. Buyers were attracted to the ‘Hub’ as it offered investors a diverse income stream which included 41.3% (by area) healthcare uses including Amcal Pharamcy, Westside GP Superclinic, and Westlake Dental,” Dever said.

“Neighbourhood shopping centre transactions are down 52% in comparison to last year with the most resilient capital being off-shore groups and private investors unaffected by the high interest rate environment which was highlighted in this campaign at Westlake.

“Investors show a particular preference for assets with long-term leases and income growth potential through rental reversion and fixed rental reviews. Inner city neighbourhood and convenience centres in close proximity to the CBD are highly sought-after due to strong underlying land value, resulting in lower yields.”