A modern retail, medical and fuel complex in Flagstone, 50km south-west of Brisbane, has been sold for $25.35million demonstrating the ongoing strong demand for daily needs assets.
Savills’ Peter Tyson and Michael Harcourt managed the transaction on behalf of an offshore investor to a local private investor at a sharp yield of 5.40%, following an Expressions of Interest sale process.
The Complex incorporates three adjoining properties, purchased in-one-line, comprising a Convenience Retail Centre, 7 Eleven and Red Rooster and Health Precinct with a combined lettable area of 2,878sqm.
Savills National Director of Retail Investments, Peter Tyson said the campaign generated over 200 enquiries attracting multiple bids from more than $230 million worth of capital.
“The master planned community of Flagstone is one of the fastest growing areas in the country and assets such as these provide solid investment attributes,” Mr Tyson said.
Mr Harcourt said, “The demand for daily needs assets, especially medical based, remains strong as investors look for stable assets with income growth to withstand rising interest rates.”
According to Real Capital Analytics, retail transactions throughout the sunshine state have seen steady growth with year to June showing $578.2 million in retail transactions in Queensland, up from approximately $458 million for the same period last year.
This builds on the significant investment activity year on year within the retail property sector which, in 2021, saw $5.57 billion in transactions recorded in Queensland, up from $1.06 billion in 2020.
The Flagstone deal is the latest in a string of convenience retail sales sold by Savills with other recent transactions including Boambee Central, Emu Park Village and Bribie Retail Centres.
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