An IGA-anchored convenience shopping centre south of Brisbane has changed hands for the first time in its 30-year plus history.

According to CoreLogic Shyla Property paid $8.25m for the Boronia Heights Shopping Centre at 115-119 Short Street, in a deal that realised a yield of 6.21 per cent.

CBRE’s Harrison Coburn, who brokered the sale on behalf of a family trust, refused to reveal the buyer but he believed the property sold for one of the sharpest convenience centre’s yields this year.

The shopping centre was built in 1993 and has serviced the local catchment since its inception. The 1200 sqm convenience centre consists of nine specialty retailers including BWS and is anchored by IGA with a strong tenant retention history. The property sits on a prime 5837 sqm corner and offers a low site coverage of 20 per cent.

“With a limited number of IGA-anchored shopping centre’s being formally offered to market and sold in Queensland within the last 18 months, it is evident that these convenience centre investments remain tightly held and highly sought after, particularly assets that offer value add opportunities,” Mr Coburn said.

The sales campaign generated more than 160 inquiries with six competitive offers received at the close. Mr Coburn said the Boronia Heights Shopping Centre was the second IGA-anchored sale his team has handled this year along with the recent sale of the East Brisbane Marketplace for $16.25m. “With 54 per cent of the tenants occupying the Boronia Heights centre for over 10 years, the buyer was attracted to the excellent tenant retention and how stable the income profile has been within the centre,” he said.

General manager of Property Management at GEON and the incoming property manager of the centre, Dale Hermosilla-Silva said the new owner has future plans to enhance the centre’s appeal through comprehensive renovations, modernisation of amenities and strategic tenant mix.

Source: The Courier Mail.