Morningside Plaza sets another Record Yield for QLD retail

A private investor has snapped up Morningside Plaza Shopping Centre, in Brisbane’s inner east at a sharp yield of 5.1% matching the lowest ever recorded yield for a neighbourhood centre sale in Queensland.

The off-market transaction was brokered by Peter Tyson & Jon Tyson of Savills Retail Investments for $23.8 million on behalf of Melbourne based veteran shopping centre developer and investor Lascorp Development Group.

The Coles anchored Centre is located in Morningside, approximately 5km radially east of the Brisbane CBD with frontage to Junction Road.

The 4,431 square metre enclosed mall is anchored by a 3,000 square metre Coles Supermarket with 9 specialty shops and car parking for 233 vehicles.

Savills Peter Tyson said that “Whilst Morningside Plaza was not for sale, we received an aggressively priced offer from a private investor to purchase the asset.”

“The buyer was seeking a suitable metro asset and was attracted to the long lease security from Coles the inner Brisbane location,” Peter Tyson said.

Savills also negotiated the sale of the centre to Lascorp in 2013. Lascorp then undertook an extensive refurbishment and repositioning of the centre, significantly improving parking, traffic and shopper foot flow through improved vertical transport, mall upgrade works and tenant remixing.

“Metropolitan centres anchored by Coles or Woolworths in the sub $30 million price point are typically tightly held and have become an increasingly rare commodity in the marketplace,” Peter Tyson said.

“We expect yields for quality neighbourhood assets to remain firm throughout 2018, reflective of this strong ongoing demand and tight supply.”