This article originally appeared in Commo.
The Hub Westlake, anchored by SPAR sold for nearly $1.4m more than previous sale price showing resilience in the retail sector given current market conditions. The Hub Westlake sold by Colliers Harry Dever, Associate Director of Colliers Retail Middle Markets on behalf of Real Asset Management (RAM) Group.
The Hub Westlake, anchored by SPAR sells for nearly $1.4m more than previous sale price showing resilience in the retail sector given current market conditions.
The Hub Westlake, a convenience-based retail shopping centre anchored by SPAR, 6 specialies and a Swim School has been transacted off market by Colliers Harry Dever, Associate Director of Colliers Retail Middle Markets, QLD who sold the Brisbane metroplitan Neighbourhood Shopping Centre to a private investor, highlighting the 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 per cent increase.
Matthew Strotton, RAM’s Executive Director and Head of Real Estate, 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 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,” Mr Dever Said.
“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”.
“The centre boasts an 8.3 year WALE (by income) and has traded at a circa 6 per cent yield.”
“Neighbourhood Shopping Centre transactions are down 52 per cent in comparison to last year with the most resillient capital being off-shore groups and private investors uneffected 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 landvalue, resulting in lower yields.”
‘The Hub’ at Westlake is located 21km south west of the Brisbane CBD on the corner of Westlake Drive and Penong Street and is currently tenanted by SPAR, To Be Or Not To Be café, Westlake Dental, Westside GP Superclinic, Amcal Pharmacy, Rackley Swimming and Centenary Pool Mart.