Savills sell Queensland's Gympie shopping centre for $28.3 million

In the latest run of retail sales in regional Queensland, Gympie’s Southside Town Centre neighbourhood shopping centre has sold for $28.3 million.

Unlisted public company AHC Ltd sold the centre to a private investor on a passing yield of 6.53%.

Southside Town Centre is positioned on a two-hectare site at 1 Woolgar Road at Southside, about two kilometres from Gympie CBD.

The shopping centre, which opened in December 2011, is anchored by Woolworths spread over 3,102 square metres and supported by a discount variety store and 12 specialty tenants including a medical centre and pharmacy.

The site also includes a freestanding Caltex Service Station and Star-Mart, with prospects for a future fast food outlet on an adjacent undeveloped pad site.

The property is underpinned by a 20-year lease to Woolworths until 2031, and over 50 percent of the total rental income is from Woolworths and Caltex.

There is parking for 343 vehicles.

The property was marketed by Peter and Jon Tyson of Savills via an expressions of interest campaign that attracted over 150 buyer enquiries. 

Shopping centre investments, supported by major anchor supermarket tenants, in regional locations are in demand as investors look beyond the suburban Brisbane market for both opportunities and yield, said Peter Tyson.

“The sale of the Southside Town Centre continues this trend and highlights the growing demand for well-established and strongly performing retail assets in regional centres such as Gympie,” he said.

Savills recently sold the Banora Central Shopping Centre, south of the Gold Coast, for $19 million to a private investor at a passing yield of approximately 6.49%.

The 13,340sq m site on the corner of Leisure Drive and Fraser Drive at Banora Point, was built in 2007 and features a Coles supermarket, three specialty shops, one kiosk and two ATMs and extensive partly covered grade-level parking. 

Jon Tyson of Savills said with only four specialty tenants, the asset offered strong income security and little or no leasing risk.

"This feature, coupled with a low management requirement, was of particular appeal to investors," he said.

"It was this income security and ease of management that set the centre apart from other assets."