Family development group Horwell Property Investments has purchased the Westpoint Shopping Centre in Browns Plains, Brisbane for $46.5 million, reflecting a 5.44% yield.

The 5,978 sqm neighbourhood shopping centre was located 21 kilometres south of the Brisbane CBD, servicing the Brisbane and Logan LGA’s.

The fully leased property was secured by a 20-year lease to Woolworths supermarket and supported by national and chain specialty tenants, representing 73% of the gross income.

The catchment within a 5km radius of the centre was expected to increase by 12.7% across a 10-year period to 2032.

The asset attracted interest from onshore and offshore investors, according to CBRE’s Joe Tynan and Michael Hedger, who brokered the deal.

“The growth characteristics displayed by the centre resulted in a strong yield despite the current state of the retail investment market which has seen a marginal softening due to the increasing cost of capital, following the RBA’s gradual increases to the cash rate since May 2022,” Hedger said.

“The high-performing Woolworths is extremely close to achieving turnover rent, with the property also offering significant development upside given the low site coverage and there is already a DA approved for a 432 sqm proposed tenancy,” Tynan said.

“This was a draw card for prospective purchasers, with growth prospects at the forefront of investment decisions.

“The projected population growth in the catchment, as well as the centres fully-leased tenancy profile, long history of tenant retention and 6.5-year WALE were also critical to the appeal of Westpoint, providing a secure income profile.”

The deal comes amid a significant amount of private investor interest generated from recent campaigns such as Rochedale Village and the Zone Underwood.