ISPT has bought the Caloundra Village retail centre on the Sunshine Coast in Queensland, as the company targets convenience-based neighbourhood centres.
The property, located 75km north of Brisbane CBD, was anchored by an IGA supermarket and leased to 12 non-discretionary speciality stores.
Caloundra Village was acquired on behalf of the ISPT Retail Australia Property Trust (IRAPT), joining two other Sunshine Coast properties in the trust’s portfolio – Coolum Park and Coolum Village.
IRAPT Fund Manager Kate Matthewson said the acquisition aligned with IRAPT’s strategy for 2021-2025.
“Caloundra Village is a solid addition to IRAPT’s portfolio of convenience-based neighbourhood centres,” Matthewson said
“This acquisition increases IRAPT’s exposure to the Sunshine Coast, an area experiencing a sea-change population boom and significant government investment and infrastructure.”
Recent retail deals in Queensland include the sale of Riverlakes Village neighbourhood shopping centre in Cornubia, Brisbane for $17.4 million last week, reflecting a passing yield of 5.5%.
Last month, QIC settled on the sale of its half stake in the Westfield Helensvale shopping centre on the Gold Coast to IP Generation Holdings for $185 million, while Argus Property Partners sold the Metro Market shopping centre in Biggera Waters on the Gold Coast for about $39.4 million.
Prior to that, an EG fund bought a half stake in the Grand Plaza shopping centre in Brisbane from Invesco at an acquisition core capitalisation rate of close to 5.25%, while IJ Capital sold the Benowa Gardens shopping centre on the Gold Coast to a local private investment group for $60.5 million.
Across Australia, retail property investment volumes reached $2.7 billion during Q1 2022, down 13% compared to the same period last year, according to Real Capital Analytics.
The retail sector continued its recent good run in Q1 2022 despite lower levels compared to Q1 2021, with retail investment up 119% to $19.6 billion during the past 12 months, RCA said.