Investors scramble for an IGA-anchored convenience centre as yields tighten for quality retail

AN IGA-anchored convenience centre in Brisbane’s eastern suburbs almost broke the 6 per cent yield barrier when it was sold to a Gold Coast family.

Wondall Road Village shopping centre at Manly West, sold for almost $16 million.

AN IGA-anchored convenience centre in Brisbane’s eastern suburbs sparked strong interest before being snapped up by a Gold Coast family, as investors scramble for premium retail opportunities.

CBRE’s Michael Hedger and Joe Tynan sold Wondall Road Village at 190 Radford Rd, Manly West, for just under $16 million on behalf of a local Brisbane syndicate, Lomin Holdings, which developed the property four years ago.

Following an expressions of interest campaign which attracted more than 70 inquires, the sale realised a yield of 6.08 per cent.

“The yield achieved is the strongest that we have seen for an IGA-anchored asset in Queensland,” Mr Hedger said.

“We continue to see new sources of capital entering the market that are prepared to pay a premium to secure retail assets that offer strong investment fundamentals.”

The sale followed a series of CBRE transactions underpinned by IGA leases with Yarrabilba and Emu Park Village convenience centres recently selling for $8.95 million (6.5 per cent yield) and $12.25 million (6.91 per cent) respectively

Wondall Road Village has 1873sq m of gross floor area and is on a 9712sq m site.

As well as the IGA supermarket it has a BP Service Centre and a five-bay car wash, in addition to eight specialty stores, comprised mainly of food and beverage and medical retailers.

Mr Tynan said the sale campaign had represented the first opportunity to buy the property.

“Strong local, interstate and offshore inquiry was received from private high net worth individuals and syndicators,” he said.

“We received a total of 72 inquires, with six formal positions put forward that were all very competitive. This transaction demonstrates the confidence the market holds for IGA assets.”