Perth’s Kerching Capital buys shopping centre in Brisbane for $10.4 million

Perth-based syndicate Kerching Capital has purchased its third IGA-anchored shopping centre in Queensland for nearly $10.4 million as it continues to look east to grow its footprint in the retail investment market.

The Property Investment Group signed the sale contract on Sandstone Village – a neighbourhood shopping centre located in the Brisbane suburb of Sandstone Point. The sale reflects a yield of nearly seven percent.

The Sandstone Village deal follows the nearly $20 million deal for Calliope Shopping Centre in 2015 for Kerching Capital.   

The centre has a net lettable area of 2,289 sqm and is anchored by a Supa IGA, medical practice and other retailers including BWS. 

CBRE’s Nick Willis and Michael Hedger transacted on behalf of Properties and Pathways. 

The decision to sell was in line with Properties and Pathways’ growth strategy, said Willis and highlighted the growing momentum in the interstate market, with more investors opting to search outside their geographic boundaries for opportunities. 

“Liquidity for interstate retail investment transactions is becoming increasingly prevalent as investors search further for suitable opportunities and the market continues to strengthen,” Willis said. 

Properties & Pathways’ Director Cal Doggett said the sale achieved a fantastic result for its investors and also supported the company’s longer-term growth strategy.