Toowoomba’s Drayton Shopping Centre sells to investment firm for $34.34m

A massive investment firm worth more than $2.5b has snapped up a Toowoomba shopping centre for an eye-watering sum. Check out the details here.

The Drayton Shopping Centre on Brisbane Street, along with a neighbouring medical centre, in the city's southwest has been sold to ASX-listed Shopping Centres Australasia for $34.34m.

A large shopping centre in Toowoomba’s southwest has been snapped up by a massive investment company for more than $34m.

The Drayton Shopping Centre on Brisbane Street was bought by Shopping Centres Australasia Property Group (SCA), along with the neighbouring medical centre, for a combined $34.34m off-market on a deal with a yield of 5.39 per cent.

The large commercial centre, which is anchored by a Woolworths and features a number of specialty stores, was built in 2014.

SCA owns nearly 100 shopping centres across Australia and its market capitalisation on the ASX was worth $2.75 billion.

The deal was brokered by Savills national director Peter Tyson, who said SCA was interested in “low-risk” investments.

The Drayton Shopping Centre on Brisbane Street, along with a neighbouring medical centre, in the city's southwest has been sold to ASX-listed Shopping Centres Australasia for $34.34m.

“The centre was a perfect fit for ASX listed SCA Property Group’s investment philosophy of investing in high-quality low-risk convenience based neighbourhood retail centres,” he said.

“Drayton is a defensive retail asset comprising a strongly-trading full line Woolworths supermarket (and) is fully leased, featuring only 11 specialty tenancies including medical,

dental, pharmacy and other daily-needs based traders.

“This asset class has proven to be resilient due to its exposure to non-discretionary retail tenants and strong weighting to food sales through grocery-based anchors.

“In this case, Woolworths secured around 60 per cent of the income.”

Mr Tyson’s colleague John Tyson said smaller neighbourhood centres were becoming increasingly popular investment options in a post-Covid economy.

“Convenience based neighbourhood centres anchored by Coles or Woolworths in the sub $40 million price point are becoming more scarce in the market at the same time as they are in more demand,” he said.

It comes just a few months after Clifford Gardens Shopping Centre was sold for $145m.