Coffee Club co-founding director Emmanuel Drivas forks out $27 million for a Brisbane southside shopping centre

COFFEE Club co-founding director Emmanuel Drivas has brewed up a deal and bought a southside Brisbane shopping centre.

YIELDS TIGHTEN: Woolworths Moorooka Shopping Centre sold for $27 million

COFFEE Club co-founding director Emmanuel Drivas has brewed up a deal and bought a southside Brisbane shopping centre.

According to industry sources Mr Drivas paid just over $27 million for the Woolworths Moorooka Shopping Centre on Beaudesert Rd.

The neighbourhood shopping was owned and developed by Pace Investments and sold via an expressions of interest campaign by JLL’s Jacob Swan and Sam Hatcher.

Mr Swan said the national marketing campaign and received about 120 inquiries and 10 formal expressions of interest

“Demand was strong because of its locality and strong trading history which is significantly above average,” he said.

The deal realised a yield of about 6.6 per cent

The property, which was refurbished in 2010, has a gross lettable area of 4893sq m and is on 1ha of land. It has 224 car bays and as well as the Woolworths it has nine speciality shops.

It is 100 per cent leased with a 12-year weighted average lease expiry.

Mr Swan said buyer sentiment towards neighbourhood shopping centres remains strong.

“That has been reflected in the exceptionally high levels of investment activity over the last two years,” he said.

“Southeast Queensland has recorded over $471 million worth of neighbourhood transactions this year and follows a very strong year in 2014 ($532 million).

“We continue to see stronger pricing on transactions as investors look to build scale in the neighbourhood sector.

“Neighbourhood yields have compressed 91 basis points nationally over the past 12 months to an average of 7.33 per cent.

“It’s been a consistent theme across South East Queensland as well, with yields having tightened 88 basis points over 12 months.”

The sale is the second this week for Mr Swan and Mr Hatcher after Brisbane-based

rich-lister and retail property entrepreneur Henry Yuen paid $30.68 million for a Sentinel Property Group retail homemaker property at Rothwell north of Brisbane.

Sentinel bough the centre in December, 2011, for $25.75 million acquisition.

The retail homemaker centre, branded as Focus @ Rothwell, is set on a 4ha site on Deception Bay Rd and has five stand alone buildings with a total lettable area of 11,088sq m.