Woolworths centre in Queensland's Logan City snapped up for $38.25 million by Asian investor

A Woolworths-anchored shopping centre in Queensland's Logan City has been snapped up for $38.25 million by an Asian investor, while another in Brisbane's Banyo is up for sale.

The newly developed Woolworths Cornubia is 30 km south-east of the Brisbane CBD and 45 km north-west of the Gold Coast.

The deal translated to a net yield of 6 percent.

CBRE’s Peter Rossi and Michael Hedger brokered the deal, which was settled through an expressions of interest campaign.

“In the current market conditions, there has been a flight to quality for retail assets,” Rossi said.

“New Coles and Woolworths centres are being well received and are achieving tight yields at or better than 6%.”

The property comprises the new 5,309 sqm neighbourhood shopping centre along with a 1,393 sqm medical/professional centre. Woolworths is the anchor tenant, alongside 13 retail tenancies, with the adjoining complex comprising a major medical centre/pharmacy and four professional suites.

Woolworths accounts for circa 55% of the income stream.

The centre was acquired by an investor with existing retail interests in Brisbane.

The transaction follows another Woolworths’ sale in South East Queensland's Everton Park. The Woolworths and Masters centre was acquired for $70 million by Singaporean real estate investment managers Rockworth Capital Partners.

The next test of Queensland's retail market involves another Woolworths-anchored shopping centre in Banyo.

The site was acquired from Woolworths by building company Adco, which then developed the neighbourhood centre based on a 20-year lease to the supermarket giant.

The sale campaign is through CBRE’s Joe Tynan and Justin Dowers.

The centre offers a fully leased net annual rental of circa $2.07 million.