EXCEED Capital, a privately-owned investment company based in Brisbane, has bought North Lakes Style Centre off-market for $21.5M at 4-6 Burke Crescent.
The established large format retail centre comprised 15 complementary tenancies and came with a 1.834ha* land area and 7,971sq m* of net lettable area.
The site was sold between Ray White Industrial Milton Associate Director – Investment Sales Matt Maranta and Ray White Commercial Northern Corridor Group Senior Sales Executive, Ashley Rees.
Mr Maranta said the off-market process saw significant interest that came from both local and state levels.
“With substantial yield compression evident with the more contemporary neighbourhood centre transactions, we’re seeing heightened interest from syndicates and funds in the bulky goods sector,” he said.
“This has stemmed from acquisitions incurring similar investment fundamentals, but provide an ability to generate distribution rates that fit investor demand.
“We’re seeing a heavy push from Perth and Melbourne-based groups looking for core bulky goods assets throughout the wider Queensland market.
“The ability to have an investments value underwritten from the existing land, as well as low base rentals, positions large format retail investments to become the next in-demand asset class.
“Ray White Commercial Milton introduced Exceed Capital to the deal that was under agency with Ray White Commercial Northern Corridor Group, with Luke Wray and I managing the purchaser, and Ashley and Chris Massie managing the vendor aspect.”
Mr Rees said the asset was in the heart of the fourth fastest growing suburb in the country and provided high visibility with a strong tenancy mix.
“The complex boasts 268 metres* of high exposure frontage to the main North South Arterial of North Lakes and boasts national names such as School Locker and 99 Bikes across two main buildings, a car wash and stand-alone restaurant,” he said.
“The property returns a net income of $1,752,440 p.a. and is 96.3 per cent tenanted across 15 tenancies, with 12 of the 15 on full net leases.
“With flexible MBA zoning, the asset is surrounded by major national tenants, including Queensland’s first Costco and the state’s largest Bunnings.
“The location was a real drawcard, with North Lakes recently named Australia’s best master planned community and touted as Queensland’s fastest growing region in the 2016 Census, and recognised by the State Government as an area of regional economic significance.”