Built upon the site is a colonial-style shopping centre consisting of nine tenancies in an ‘L’ shaped format, which benefits from exposure to Tallebudgera Creek Road. The centre directly adjoins a Caltex service station to the south, forming a mutually beneficial link for both properties.
The centre provides a diverse mix of nine tenancies including Subway, food retailers, medical users and a hairdresser. A week out from the auction date, a hairdresser in a 151 sqm tenancy
vacated their premises which resulted in a reduction of the passing net income from $236,173 pa to $199,773 pa. The leasing profile consisted of predominantly 3 year leases which
provided a short 1.88 year WALE but at the same time offered investors the opportunity to allocate CAPEX into refurbishing the centre to then negotiate longer leases and higher rents. 115 enquiries were fielded throughout the high profile five week marketing campaign, with buyers attracted to the complimentary position of the asset adjoining a service station within the highly
desirable Burleigh Heads. The auction process generated eight registered bidders which resulted in spirited bidding that began at $1,700,000 and finished at $2,900,000 selling under the hammer.
The sellers had sweated the asset for the last 20 years, therefore the majority of bidders were drawn to the value add opportunities to reposition the centre and undergo more intensive management. The exceptionally high level of investor engagement demonstrates the significant depth of capital from private investors seeking shopping centres with value add opportunities in South East Queensland.
|Method of Sale:||Auction|
|Auction Date:||7 December 2018|
|Passing Net Income:||$199,773 pa|
|Fully Leased Net Income:||$236,173 pa|
|Gross Lettable Area:||849sqm|