Shayher Group pays $148.5m for Dexus’s Capalaba Central shopping centre in the largest sub-regional deal of the year

IN what is the largest regional shopping centre deal of the year a company controlled by a Taiwanese conglomerate has bought Capalaba Central, south east of the Brisbane CBD.

SOLD: The Shayher Group pad $148.5 million for sub-regional Capalaba Central shopping centre

IN what is the largest regional shopping centre deal of the year a company controlled by a Taiwanese conglomerate has bought Capalaba Central, south east of the Brisbane CBD.

Shayher Group, owned by the Pau Jar Group, paid $148.5 million for the Dexus Property owned shopping centre.

The deal, struck by JLL head of retail investments, Australia, Simon Rooney, realised a yield of 7.5 per cent.

Mr Rooney said the subregional market continued to attract high levels of interest from a wide variety of domestic and offshore investors.

“Value-add, quality opportunities are rare and highly sought after for their potential to drive higher returns for investors, in a market where yields are compressing for the best assets,” he said.

“Leasing markets nationally continue to improve for core retail assets, driven by a solid rebound in retail spending growth.

“The more positive outlook for market fundamentals has provided investors with a greater level of confidence in the short to medium term outlook.

“Investors are responding to the improvement in underlying asset performance and we’re seeing a rise in the level of risk appetite.”

The Shayher Group also own Wynnum Plaza and Yamanto Marketplace. In 2013 it paid $63 million for the former Supreme Court site and has started construction of a $500 million hotel, office and residential development.

Mr Rooney said 2014 was the strongest year ever recorded for subregional centre transactions across Australia and 2015 was looking just as strong.

“There has been over $560 million in subregional transactions already in 2015 to date, reflecting a very solid result compared with the long-term annual average of just $866 million.

“The Queensland retail market has been very active in terms of overall investment activity, with volumes up 20 per cent year on year to $1.7 billion in 2014 across all shopping centre sub-sectors,” he said.

Capalaba Central is anchored by both Woolworths and Coles supermarkets, a Big W discount department store, Harvey Norman, an eight screen Birch Carroll & Coyle Cinema, in addition to four mini major tenancies, 95 specialty shops and kiosks providing a total gross lettable area of 42,124sq m.

The Centre is on 10ha and is just 20km south east of the Brisbane CBD.