Investor buys Arana Hills retail centre for $5.5 million

A fully leased retail centre in Arana Hills has been purchased by a private investor for $5.5 million on a 7% yield.

The centre is located on a prominent 2,576 square metre site at 4 Patricks Road. It is occupied by seven tenants, including Commonwealth Bank, Westpac, QML and Snap Fitness, that generate an approximate annual net income of $385,206.

Hunter Higgins and Stewart Gilchrist of Colliers International marketed the property via an expression of interest campaign.

Commercial buyer's agent Damien Holliday of Prosper Group assisted the purchaser in the search.

The five week campaign brought close to 80 enquiries which came down to seven registered offers from a mix of international and national purchasers.

Prior to commencing the campaign, the vendor renegotiated leases and significantly improved weighted average lease expiry (WALE), which reflected positively in the end price.