This article originally appeared in Real Estate Source.
Real Asset Management has banked a 14 per cent capital gain offloading a small suburban Brisbane shopping centre after five years.
The Hub Westlake, 21 kilometres south west of town, is trading for $11.46 million to a private investor.
The Sydney based fund manager paid $10.075m.
The off-market disposal – to a high net-worth Sydney private investor – was at book value, reflecting a six per cent yield.
“Metro convenience retail centres underpinned by long weighted average lease expiries and national covenants remain highly sought after by local and interstate private investors,” Colliers’ Harry Dever, who brokered the deal said.
“Buyers were attracted to ‘the Hub’ as it offered investors a diverse income stream which included 41.3 per cent, by area, healthcare uses including Amcal Pharmacy, Westside GP Superclinic and Westlake Dental,” he added.
SPAR is the anchor.
The WALE by income is 8.3 years.
“The sale of The Hub Westlake…demonstrates the resilience of well positioned essential services retail property assets,” RAM executive director and head of Real Estate, Matthew Strotton, said
Mr Lever said neighbourhood shopping centre transactions are down 52pc in comparison to last year
“The most resilient capital [is from] offshore groups and private investors unaffected by the high interest rate environment which was highlighted in this campaign at Westlake,” he added.
“Investors show a particular preference for assets with long-term leases and income growth potential through rental reversion and fixed rental reviews,” according to the executive.
“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”.
Or Not to Be, Rackley Swimming and Centenary Pool Mart are amongst the other tenants at complex, at the V-intersection of Westlake Drive and Penong Street.