Supermarket giant Woolworths Group has sold two of its newest neighbourhood shopping centres in and near Brisbane to private investors for a combined price of $66 million. 

Woolworths disposed of the Dakabin Shopping Centre and Bannockburn Village Shopping Centre.  

The Dakabin centre, which is 27km north of the Brisbane CBD, sold for $40 million, representing a fully leased yield of 5.55%.  

The Bannockburn Village Shopping Centre, located between Brisbane and the Gold Coast, sold for $26 million, showing a fully leased yield of 5.52%. 

The deals reflect continued demand for convenience-based retail investments, including Dexus’ recent $111 million sale of the Deepwater Plaza sub-regional shopping centre in Woy Woy. 

Other recent sales include the $88.1 million sale of the Shepparton Marketplace and the $85 million sale of Beenleigh Marketplace in 2022. 

CBRE’s Michael Hedger, Joe Tynan and James Douglas together with JLL’s Jacob Swan, Sam Hatcher and Ned McKendry brokered the deals via an Expression of Interest campaign which generated both national and offshore investment interest, receiving over 100 enquires and 15 formal offers.  

“These sales are a reflection of the pent-up demand we are seeing from private investors seeking well-located neighbourhood centres that offer strong investment fundamentals and a diverse income profile heavily weighted towards towards non-discretionary specialty retailers and a long lease to a dominant supermarket tenant” CBRE’s Hedger said. 

“Both shopping centres demonstrate strong growth and security of income, which ultimately attracted bidders across both assets,” JLL’s Swan said.  

“Despite increase lending criteria and volatility in some sectors of the market, neighbourhood shopping centres continue to provide the strongest hedge against inflation.”