Gympie Shopping Centre Reaps $28.3m Sale

In the latest of a strong run of retail sales in Queensland regional locations, Gympie’s Southside Town Centre neighbourhood shopping centre has been sold for $28.3 million.

In a deal negotiated by Peter Tyson and Jon Tyson of Savills, the Gympie centre was sold by unlisted public company AHC Limited to an undisclosed private investor on a passing yield of 6.53%.

The property was marketed by Savills via an Expressions of Interest campaign that attracted over 150 buyer enquiries from across Australia and multiple bids.

Southside Town Centre is positioned on a prominent two hectare site at 1 Woolgar Road at Southside, approximately two kilometres south west of the Gympie CBD.

The modern neighbourhood shopping centre, which opened in December 2011, is anchored by a 3,102sq m Woolworths and supported by a discount variety store and 12 specialty tenants including a medical centre and pharmacy. The site also includes a freestanding Caltex Service Station and Star-Mart, and also provides the potential for a future complementary fast food outlet on an adjacent undeveloped pad site.

The property is underpinned by a 20 year lease to Woolworths until 2031, and over 50 percent of total rental income is secured by Woolworths and Caltex. The centre also includes on grade and basement level parking for 343 vehicles.

Peter Tyson said high quality shopping centre investments, supported by major anchor supermarket tenants, in regional locations are in increasingly high demand as investors look beyond the suburban Brisbane market for both opportunities and yield.

“The sale of the Southside Town Centre continues this trend and highlights the growing demand for well-established and strongly performing retail assets in regional centres such as Gympie,” he said.

Jon Tyson commented that “It was pleasing to close the circle on the sale of the completed asset after having originally sold the development site to AHC some years ago.”

Savills has also been marketing the Noosa Junction Plaza shopping centre, on the nearby Sunshine Coast, on behalf of owner Metcash. The Noosa centre is situated only one kilometre from popular Hastings Street strip and comprises an enclosed mall anchored by a Supa IGA supermarket and Target Country store plus 17 specialty shops, and represents a rare offering in a very tightly-held market.