Brisbane sub-regional shopping centre, Arana Hills comes to market

JLL has been appointed to negotiate the sale of Arana Hills Plaza on behalf of ISPT.

Arana Hills Plaza is a well-established food, service and convenience based sub-regional shopping centre securely anchored by long term leases to leading national retailers; Coles, Kmart and Aldi, in addition to 23 specialty tenants, 4 kiosks, 2 ATMs and a freestanding Shell Petrol Station, providing a total gross lettable area of 14,355 square metres.

According to JLL’s Head of Retail Investments Simon Rooney demand for convenience-based sub-regional assets such as Arana Hills has been building up due to a lack of investment opportunities throughout 2016.

“Sourcing retail assets within capital city metropolitan areas is challenging at present, particularly for sub-regional centres."

There have been only five sub-regional centres sold within the Brisbane metropolitan area in the last five years, highlighting the limited stock in this asset class.

The centre is on a 5.61 hectare site 10km north-west of the Brisbane CBD, in the established suburb of Arana Hills. 

Its Coles and Kmart leases include provisions that require a high contribution toward both statutory and variable outgoings, providing income protection to future increases in outgoings and together with potential income growth via future percentage rent.