SIGN OF CONFIDENCE: Bundy shopping centre sells for $28M

BUNDABERG'S Coles Kensington shopping centre has sold to Asian investors for $28,500,000.

Coles Kensington includes a Reject Shop. Picture: Contributed

BUNDABERG'S Coles Kensington shopping centre has sold to Asian investors for $28,500,000 in a move that shows shopping centres in regional areas are attracting strong interest as sources of investment.

The sale of the mall, which was previously a Bunnings before reopening as Stockland Kensington in April 2017, settled in April this year.

Brisbane-based Queensland Retail Investments state director Peter Rossi, who oversaw the sale, said there was strong interest in the property.

"The property went through a full marketing campaign, we had significant interest from a number of parties, in Queensland and national," he said.

"There were a good number of bids."

Mr Rossi said the investors were an Asian group with roots in Brisbane.

The centre sold for $28.5 million. Picture: Contributed

The buyers, who purchased the property under an expression of interest, are listed online as Central Fair No. 3 Pty Ltd.

Mr Rossi said there was a strong interest in retail investments in regional centres due to the security offered by non-discretionary services - meaning things like food and everyday essentials.

"There's big interest in shopping centres in the regions," he said.

"The Coles at Kensington is the only free-standing chain supermarket in Bundaberg and offers a higher level of convenience than Stockland and Hinkler.

"All a shopping centre needs is a good population base."

Mr Rossi said as an investment, the property offered a 6.73 per cent yield.

"It's a very strong trading supermarket attracting a high number of customers which makes the speciality shops sell well," he said.

The shopping centre features a Reject Shop, Liquor Land and other smaller shops and services including a bakery, nail salon and eateries.

A new sushi shop is also set to open at the centre soon.

Coles supermarket in the new $30 million Stockland Kensington Shopping Centre. Picture: Mike Knott BUN070417COLES2

When construction was completed in April 2017, the property was offered with an adjoining land parcel of 9,372sq m, providing potential future expansion.

Stockland invested $30 million into its Kensington complex.

A third quarter market update, reported in April, revealed the sale of Coles Kensington had contributed to Stockland's $284.5 million in non-core retail divestments.

Stockland Bundaberg, previously Sugarland Shoppingtown, remains under the Stockland banner.

FAST FACTS

Coles Kensington income$1,749,510 pa

Other income$573,276pa

Car parks248

Land area30,262sq m

Originally published as SIGN OF CONFIDENCE: Bundy shopping centre sells for $28M