West Ipswich retail centre sells for $14.3 million

A Puma Service Station and Hungry Jack’s-anchored convenience retail centre at 242 Brisbane Street, West Ipswich has been acquired by an interstate investor for $14.3 million.

The sale, negotiated by Jon Tyson and Michael Harcourt of Savills Retail Investments, reflects a yield of 6.00% following an Expressions of Interest campaign.

242 Brisbane Street is dual-anchored with Puma Energy and Hungry Jacks underwriting 63%* of the Centre’s gross income and supported by four national brand tenants: Zarraffa’s Coffee, Snap Fitness, TSG Tobacco and Sunshine Kebabs.

The property was sold on behalf of Synergy Property Partners.

Savills Director of Retail Investments in Queensland, Jon Tyson said the sale continues the strong run of fuel and fast food anchored sales in the greater Brisbane market.

“This reflects the continuing demand for quality national tenant covenants offered by the fuel and fast food sector,” Mr Tyson said.

Mr Harcourt said investors were attracted to the centre’s diversified mix of quality tenants and long lease expiry profile (WALE).

“This near-new centre is highly desirable for a range of reasons and features a WALE of over 12 years, mostly net leases and fixed annual rent reviews of up to 4%, underwriting income growth into the future,” Mr Harcourt said.

Savills Retail Investments has sold a string of fuel or fast food assets in South East Queensland including a Red Rooster-anchored retail centre at Burleigh for $7.9m, a Caltex and Red Rooster in Parkwood for $8m and a 7-Eleven service station in Gumdale for $5.1m.