Woolworths has sold a neighbourhood shopping centre in Brisbane to an offshore investor for $35.2 million, reflecting a 5.27% yield.  

The deal comes amid strong demand for Woolworths-anchored neighbourhood malls, following the recent sales of Dakabin Shopping Centre and Bannockburn Village Shopping Centre last week.   

The recently constructed Woolworths Mountview centre was located 27km southwest of the Brisbane CBD. 

The 4,981 sqm centre was anchored by a Woolworths supermarket, which occupied 3,846 sqm, representing 77% of the gross lettable area (GLA). 

The purchaser was attracted to the proposed greenfield residential and commercial developments within the surrounding area, with the MAT retail expenditure expected to increase by 4.8% per annum until 2041. 

CBRE’s Michael Hedger, Joe Tynan and James Douglas brokered the deal, representing one of the strongest results in the neighbourhood shopping centre market along the Eastern Seaboard in 2023. 

“This sale follows three recently transacted Queensland campaigns by our team, involving the Woolworths-anchored Dakabin Shopping Centre, Bannockburn Village and Westpoint Shopping centre, for a combined $147 million,” Hedger said.  

“Investor demand in the private sector continues to build momentum, particularly for newly built assets as buyers take into consideration the replacement value of centres given the rising construction costs.”  

Tynan said the transactions had highlighted the depth of capital for neighbourhood shopping centres, with Woolworths Mountview attracting nine formal bids and four groups making offers close to the final pricing achieved.