Sunshine Coast shopping centre on the market
A SUNSHINE Coast shopping centre anchored by a dominant Coles supermarket in a high-growth master-planned community has been put on the market.
Peregian Springs Shopping Centre will be offered to the market by CBRE and JLL by formal expressions of interest campaign, closing Thursday, August 17.
The Alceon Group along with joint venture partners CPRAM Investments, have appointed Sam Hatcher and David Mathews of JLL and Peter Rossi and Michael Hedger of CBRE to market the property.
Peregian Springs Shopping Centre is a small high quality, 4772sq m neighbourhood centre, securely anchored by Coles, together with 14 specialty tenancies. It has an extensive Weighted Average Lease Expiry (WALE) of 7.5 years, and is currently 99.6% occupied.
The shopping centre is strategically located in the master planned community of Peregian Springs, a rapidly growing population corridor in the northern part of the Sunshine Coast.
There are 110 residential lots currently under development immediately to the south of the centre and a further 530 further residential lots earmarked to be developed by 2021, which upon completion will represent the addition of more than 1800 new people in the trade area.
JLL's director of Queensland retail investments Sam Hatcher said Peregian Springs Shopping Centre was an exceptional neighbourhood shopping centre that would continue to benefit from high future population growth, especially given that it contains the only full-line supermarket in the main trade area, with no threat of competition.
"The highly defensive nature of these non-discretionary-based assets continues to appeal to the market,'' he said.
"The income security of this particular asset is further enhanced by the outstanding performance of the Coles supermarket anchor which has a long lease-term and an initial lease expiry in July 2028.
"Accordingly, we expect to receive significant and competitive interest from a range of investors including private investors, syndicators and institutional funds management groups."
CBRE's state director retail investments Peter Rossi said that in a market where yields for neighbourhood shopping centres had reached record lows, assets of this quality remained few and far between.
"Peregian Springs Shopping Centre will provide investors not only with a stabilised, secure and growing income stream but also offers a number of immediate additional value-add/development opportunities to further drive income growth and super-charge purchaser returns.''
Occupying a significant 37,260sq m site, the centre provides significant redevelopment potential with a low site usage ratio of 13% and 4380sq m of immediately developable land, Mr Rossi said.
Coupled with existing zoning support for code assessable development brings it to a total gross lettable area (GLA) of 6500sq m or an additional 1728sq m of GLA.
For a comprehensive look at the Sunshine Coast property market pick up Real Estate in Sunshine Coast Daily Weekend on Saturday-Sunday.