Property group buys prime Gold Coast site

Mudgeeraba Market ShoppingCentreGoldCoast_2The SCA Property Group has purchased the Mudgeeraba Market shopping centre for $35.8 million, reported as a first major shopping centre transaction in 2017 on the Gold Coast.

SCA purchased the centre together with the adjoining Franklin Square retail arcade from longstanding local private owners who have held the properties since acquiring them in 1997, in a transaction brokered by Savills’ Peter Tyson and Jon Tyson.

The sale is understood to reflect a blended yield of 6.1 per cent across the two properties and follows an on market Expressions of Interest campaign conducted by Savills.

Savills national director of Retail Investments, Peter Tyson, said the campaign had attracted strong interest from local private and institutional investors, as well as offshore investors, primarily from Asia.

“The offering generated over 200 separate buyer enquiries, which is testimony to the depth of interest for this popular asset class and provides an indicator of the weight of capital targeting the neighbourhood retail sector,” Tyson said.

“While the buyer was an Australian listed REIT, it was interesting to see numerous private investors from Asia competed for the offering, including bidders from China, Taiwan, Thailand and Singapore. Over recent years we have found the Gold Coast is increasingly on the radar of such groups as an investment destination.”

The Mudgeeraba Market shopping centre, originally constructed in 1993, comprises a 5,047sqm neighbourhood shopping centre, anchored by a 3,046sqm Woolworths Supermarket, and features 26 specialty shops in an open courtyard. Franklin Square is a two-level retail and commercial arcade comprising a further 16 tenants totalling 1,045sqm GFA. The centres featured a blended WALE of around five years.

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.

 

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.