Popular shopping centre is sold again

The sale marks a growing transactional history at the site.

SOLD: Gladstone Central Shopping Centre, also known as the Night Owl Centre, has been sold for $20.2 million. Picture: CBRE

A POPULAR Gladstone shopping complex has sold after going on the market in October.

Gladstone Central shopping centre, including the Spotlight Centre and the Night Owl convenience centre, has been sold to an experienced retail property syndicator for $20.2 million.

The sale marks a growing transactional history at the site; in 2007 the centre was valued at $64.3 million, but that included the Diceys Irish Bar and Restaurant and KFC, which weren't in the most recent sale.

In February 2016 the centre was put on the market by Goldman Sachs, who bought it from Bank of Queensland in July 2012 when it took over a bundle of $156 million in bad commercial property loans.

The most recent sale was finalised last week and was instructed by the mortgagee in possession, Restructuring Solutions, who acted on behalf of a major investment banking client.

Commercial real estate firm CBRE said the sale demonstrated national investment support for Gladstone in both the private and public sectors.

Gladstone Central, also known as the Night Owl, shopping centre is on the market. Picture: CBRE

CBRE's Peter Rossi and Darren Collins took the property to a national campaign which attracted interest from investors from around the country.

"Most buyers were impressed with the continued growth of the region, which is supported by multiple significant infrastructure projects," Mr Rossi said.

"Support for the establishment of Gladstone as the hub for the National Hydrogen Strategy's proposed $1bn investment in the hydrogen energy industry - if Labor wins the election - was seen as a positive."

He said the property presented a value-add opportunity for the buyer to maximise the income through an aggressive leasing, re-mixing and management strategy focussed on the available tenancies, with a replacement cost of more than double the purchase price.

The centre has 366 car spaces with direct access from the Dawson Highway.

Mr Collins said tenants benefited from direct drive-up access and ample parking.

"The centre's design provides a highly convenient retail offering, which is supported by large format retailers Repco and Spotlight and the only cinema complex in the city," Mr Collins said.

CBRE said the centre's retail expenditure is forecast to grow from $1.1billion in 2017 to $2billion by 2031 according to Location IQ.

The centre has a gross lettable area of 12,579sq m and is on a prominent 18,914sq m site.