This article originally appeared in The Courier Mail
Acquisitive Sydney-based fund manager RAM Group has swooped on a prominent NightOwl Convenience Centre at the North Lakes, north of Brisbane.
The centre is anchored by a NightOwl supermarket as well as 10 speciality tenancies, including a BWS Bottleshop, Domino’s Pizza, a sushi outlet, seafood takeaway and hairdresser, medical centre and dentist.
The property was sold for $6.7 million following an expressions of interest campaign handled by Savills Jon Tyson and Michael Harcourt which attracted more than 200 inquiries. The sale realized a yield of about 7 per cent.
Mr. Harcourt said the centre was on a high-profile 4517sq m site at 1 College St and shares a corner with Discovery Drive which is a major business thoroughfare. It adjoins the Lakes Secondary College and a childcare centre.
“North Lakes is one of the fastest growing residential areas in southeast Queensland and this property is prominently positioned to service the convenience needs of this rapidly evolving suburb,” Mr. Harcourt said.
The centre was built in 2004 and has a total lettable area of 907sq m and ongrade parking for approximately 60 vehicles. According to CoreLogic RP Data the vendor was Drivas Lakes Pty Ltd.
Mr. Tyson said the NightOwl was sold with a weighted average lease expiry profile of five uears by lettable area and income, with the majority of tenancies incorporating fixed 3-5 per cent annual rental increases.
“This was a rare retail investment opportunity in one of Brisbane’s residential growth locations,” he said.
“The combination of the property’s prominent corner position and dynamic tenancy mix was very attractive to a broad range of investors.”
“The response to this offering and the strong sale result highlights the continued investor demand for quality, high-exposure convenience retail centres in strategic locations with fast growing residential populations.”
The sale adds to Savills strong track record in retail sales in northern Brisbane last year with other transactions including the Crossroads Complex at Strathpine ($8.25 million); Anzac Avenue Retail Centre ($5.044 million) and two adjoining retail centres at Bribie Island which sold for $9.9 million.