A Queensland investor has paid $27.5m for a fully leased Newstead retail precinct.
A Queensland investor has paid $27.5m for a fully leased Brisbane retail precinct, underscoring fierce demand for large-format retail assets near the CBD.
The fully leased 3,397 sqm precinct, sold with a 4.63 per cent yield, sits on a 5,141 sqm footprint in Newstead and is anchored by Beaumont Tiles and Highgrove Bathrooms across six tenancies, including a high-visibility billboard.
Aerial view of the Newstead retail precinct.
The site is anchored by Beaumont Tiles and Highgrove Bathrooms across six tenancies, including a high-visibility billboard.
A Queensland-based private investor acquired the asset from a Victorian investment group in a deal brokered jointly by RWC Retail, MP Commercial, and Ray White Special Projects QLD.
RWC Retail managing director Lachlan O’Keeffe said the sale highlighted the sector’s tight supply and resilience.
“Large-format retail is arguably the most tightly held retail sector in the country right now,” Mr O’Keeffe said.
“National vacancy sits below 3 per cent, and quality centres backed by national tenants rarely come to market. When they do, competition is fierce.”
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Large-format retail is arguably the most tightly held retail sector in the country right now.
A Queensland investor has paid $27.5m for the Newstead retail precinct.
The property yields an annual net income of $1.27m with an average remaining lease term of 3.5 years.
The $27.5m price tag reflected $8,095 per square metre of building space and $5,349 per square metre of land.
“Sites of this scale with holding income that are so close to the CBD in a precinct like Newstead don’t come up often,” said MP Commercial joint managing partner Peter Court.
“Demand for opportunities in this pocket continues to outstrip supply, which is exactly what makes a prominent corner holding like this so tightly contested when it does come to market.”
The site also carries medium-term redevelopment potential.
Aerial view of the property in Newstead.
The site also carries medium-term redevelopment potential.
All current leases feature 12-month demolition clauses, while mixed-use zoning under the Newstead North Neighbourhood Plan allows a baseline height of five storeys, with scope for higher density.
“This site gives buyers the best of both worlds; solid income now and maximum flexibility to build later,” Ray White Special Projects QLD director Tony Williams said.
“With Brisbane desperate for housing, developers were eager to secure a site with this kind of zoning potential.”