A well-known Brisbane shopping centre located in Sunnybank Hills in the city’s south side has recently changed hands for the impressive sum of $27.95 million. The sale of Pinelands Shopping Centre was handled by Peter Tyson and Jon Tyson of Savills Retail Sales after an Expression of Interest campaign.
Peter Tyson stated that the shopping mall was purchased by an Asian investor. The new owner is based in Brisbane and bought the commercial property on a passing yield of circa 8.75 per cent. He went on to say that the sale was negotiated on behalf of Retail Direct Property, a Melbourne-based syndicate.
Mr. Tyson revealed that there was significant interest in the Pinelands Shopping Centre. More than 100 enquiries were made about the property. Most of them were from private investors and syndicators, “many of them locally domiciled.”
Given that a property like Pinelands doesn’t come onto the market often, the Centre was “strongly contested” by investors. Mr. Tyson went on to state that he felt the depth of interest in this property indicates a growing interest in the neighbourhood and in the region.
“This has been fuelled more recently by the widening yield spread stemming from lower cost of debt and property returns exacerbated by the comparatively poor return from alternative investments such as term deposits and bonds.”
The Pinewoods Shopping Centre features approximately 5,897 sq. m of space. It is located at the intersection of Beenleigh Road and Pinelands Road at Sunnybank Hills.
The shopping centre’s major tenant is a full-line Coles Supermarket. The store is secured by a 15-year lease. The mall also features a mix of other retail shops, including TAB, Cellarbrations, Westpac, Cheesecake Shop, and a pharmacy. It is a well-established part of the community and has been open for over 40 years.
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