Shopping complex sells for $17.5 million
A HERVEY Bay shopping complex has been snapped up by a Melbourne based for $17.5 million.
The Victorian investor, who requested to remain anonymous, bought the Bay Central Shopping Centre at 135 Boat Harbour Drive, directly opposite Stockland Hervey Bay.
The firm also aquired adjoining parcel of vacant land for $1.7 million on a 12 month deferred settlement, which could be used for any future expansions.
The three plazas have six major banking institutions: Westpac, NAB, Suncorp, Commonwealth Bank, Bank of Queensland and ANZ, contributing to more than 50% of gross rental income for the centre.
Stewart Gilchrist of Colliers International and Linda Bland of Century 21 Hervey Bay jointly marketed the shopping centre for sale via expressions of interest campaign.
Mr Gilchrist said Bay Central contains all the ingredients of a quality property investment.
He said that while it didn't contain a supermarket it does contain an above average component of quality national retailers.
"That coupled up with population growth dynamics of Hervey Bay, which is well above the Queensland average, are great components of a long term stable investment," Mr Gilchrist said.
"Regional shopping centres remain very tightly held, with the demand from the investment community far outweighing the number of assets available on the market. Interest is coming from all sectors of the market institutions, syndicates, property trusts and private individuals," said Mr Gilchrist.
Bay Central was originally owned by CRI Bay Central Project Pty Ltd, a subsidiary of Melbourne based Hostplus. Spiros Deftereos of Hostplus said the property was not core to their property portfolio so the decision was made to sell it.
Whilst the purchaser wished to remain anonymous, it is believed they have a long history in Hervey Bay and the acquisition of Bay Central complemented the other properties they already own in the immediate vicinity.