A popular neighbourhood shopping centre in Brisbane\u2019s southwest has sold to a private investor for $11.46m.<\/p>\n\n\n\n
The Hub Westlake showed the market strength of essential services given its sale was sealed despite recently subdued commercial property sales.<\/p>\n\n\n\n
The shopping centre was formerly part of ASX listed firm RAM Essential Services Property Fund (ASX: REP).<\/p>\n\n\n\n
RAM\u2019s executive director Matthew Strotton was happy with the result.<\/p>\n\n\n\n
\u201cDespite an unpredictable economy and high-interest rates, investors consistently seek exposure in assets that house non-discretionary retail and healthcare. Executing this sale at book value is a pleasing result,\u201d he said.<\/p>\n\n\n\n
The deal was said to highlight the power of collective essential service retailers, with the centre anchored by SPAR and also tenanted by a dental surgery, GP clinic, pharmacy, coffee shop, swimming school and a swimming pool equipment retailer.<\/p>\n\n\n\n
RAM director Doug Rapson said \u201cthe diverse revenue streams derived from both essential services retail and healthcare tenants, coupled with long-term leases, undoubtedly piqued the market\u2019s interest\u201d.<\/p>\n\n\n\n
\u201cThe Hub boasts an 8.3-year WALE by income and has traded at a circa 6 per cent yield.<\/p>\n\n\n\n
Such stable returns are attractive to investors in the current financial landscape.\u201d<\/p>\n\n\n\n
Mr Strotton said RAM was also \u201cin advanced stages of diligence for the divestment of two more portfolio assets at a combined book value of $20m\u201d.<\/p>\n\n\n\n
Funds raised are set to help RAM\u2019s 2024 agenda which Mr Strotton said was flagged to investors last week.<\/p>\n\n\n\n
Colliers Queensland expert Harry Dever used the firm\u2019s 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.<\/p>\n\n\n\n
He said \u201cmetro convenience retail centres underpinned by long WALE and national covenants remain highly sought after by local and interstate private investors\u201d.<\/p>\n\n\n\n
\u201cThe centre boasts an 8.3 year WALE (by income) and has traded at a circa 6 per cent yield\u201d.<\/p>\n\n\n\n
\u201cInvestors 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.\u201d<\/p>\n\n\n\n
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