A private investor has capitalised on the strength of Brisbane’s retail investment market, by divesting a Foodworks-anchored convenience centre for $3.4 million to an interstate syndicator.
CBRE’s Millan Narsey transacted the sale of 57 Emerald Drive, Regents Park located approximately 28kms South of Brisbane’s CBD. The sale reflected a passing yield of 7% and rate per square metre of $4,775.
Positioned on a prominent 3,511sqm corner site, the 712sqm centre comprises a diverse mix of food and service based tenancies. The centre is designed to offer maximum tenant exposure and convenience.
The campaign attracted a high volume of enquiry and a significant amount of offers were received at the close. This process demonstrated to us the depth of capital seeking sub $5 million retail investment properties.
Mr Narsey said the sale reflected a fantastic result for the vendor, translating to a 21% value increase since the property’s purchase in 2013.
“The vendor decided to take advantage of the substantial yield compression in the current market. This compression in yield is not just isolated to Foodworks Regents Park, we continue to see astute vendors capitalising on the favourable conditions by selling now at a price premium,” Mr Narsey said.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.