Clarence Property has sold the Ormeau Marketplace shopping centre in southeast Queensland to a private investor for $34 million, reflecting a 5.24% yield.  

The 4,718 sqm retail centre was anchored by a full-line Woolworths supermarket, alongside six non-discretionary based retailers including allied health and medical tenants.  

The centre has an 11.5-year weighted average lease expiry (WALE), with 87% of the income underpinned by Woolworths on a 20-year lease that expires in 2035. 

It was located 35km north of the Gold Coast CBD and 45km south of Brisbane. 

CBRE’s Joe Tynan and Michael Hedger, and JLL’s Sebastian Fahey and Nick Willis, brokered the deal.  

“The quality of this asset attracted both onshore and offshore investor interest during the competitive off-market process, with the successful purchaser having a portfolio of similar assets across Australia,” Tynan said. 

“The sale of Ormeau Marketplace demonstrates the continued focus from groups seeking to invest in this asset class as a hedge against inflation.  

“These neighbourhood centres, where the income is derived from non-discretionary retailers, can benefit from income growth via higher productivity and sales growth in an inflationary environment.”  

“The asset represents a very defensive income profile due to the limited specialty risk and the long-term leases, and is strategically positioned to capture the growing population within the northern Gold Coast corridor with the Main Trade Area to grow 21% by 2026,” JLL’s Fahey said. 

“While the increasing cost of debt has caused some uncertainty with investors, we are still experiencing strong demand for quality prime convenience-based assets in tightly held locations.” 

The deal comes after Quanta Investment Funds settled on its acquisition of the Yamanto Village in Ipswich, Queensland for $21.1m in August.