Offshore capital set to acquire Keppel Bay Plaza in Yeppoon for $28.1 million

A SMALL subregional shopping centre in central Queensland is set to change hands for $28.1 million.

STRONG YIELD: Keppel Bay Plaza and Railway Hotel in Yeppoon which sold for $28.1 million.

A SMALL subregional shopping centre in central Queensland is set to change hands for $28.1 million.

The buyer, a new local investment manager who is targeting real estate on behalf of sophisticated offshore capital, will settle next week on the purchase of Keppel Bay Plaza at 64 James St, Yeppoon.

The Coles and Target-anchored centre, which also includes the Railway Hotel and Star Liquor Warehouse, was marketed via an offers to purchase campaign by CBRE’s director of retail investments Peter Rossi and Michael Hedger.

Mr Rossi said the extended campaign attracted 55 inquires and six offers from syndicators and local private investors. The sale will realise a yield of 8.4 per cent.

“There is strong demand for secure non-metropolitan assets anchored by the national chains,” he said.

“Also, Yeppoon has a strong economy and that was valued highly by the buyers.”

The asset has a gross lettable area of 6455sq m and is on a 2.3ha site.

As well as the major tenants it has 21 speciality shops and extensive car parking.

Mr Rossi said with some yields in similar shopping centres in southeast Queensland hovering around 6 per cent investors were targeting regional assets.

“High yields in the non metropolitan areas are attracting private buyers and syndicates chasing higher returns for their unit holders,” he said.

According to CoreLogic RP Data Keppel Bay Plaza last changed in 2007 for $28 million when it was bought by White & Partners

The property started trading in 1978 and was extensively refurbished and reconfigured in 2013-14.