New owners have bought the Mackay West Shopping Centre at 331 Bridge Road in a $10.4 million deal.
New owners have bought the Mackay West Shopping Centre at 331 Bridge Road in a $10.4 million deal.

Investors secure West Mackay centre in $10.4 million deal

INVESTORS have snapped up a West Mackay shopping centre in a $10.4 million deal.

CBRE's Michael Hedger and Joe Tynan, who negotiated the off-market sale, said it reflected the strong trading performance of the Bridge Rd property.

The new owner of Mackay West Shopping Centre is a Brisbane-based private investor.

The result equated to an initial yield of 6.75 per cent.

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"The property was sold off-market following a direct approach from an investor seeking an IGA secured retail investment," Mr Hedger said.

"In the current low interest rate environment, we're fielding strong demand for retail assets which offer a resilient income profile and have strong investment fundamentals.

"However, a limited number of quality properties are formally available."

The Mackay West Shopping Centre is anchored by SUPA IGA on a 20-year lease, covering more than 80 per cent of the gross floor area.

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The property also includes four specialty stores, including BWS and Sullivan Nicolaides, and offers a 9.78-year WALE and a large land holding of 9227sq m in Mackay's central activity precinct.

"Regional locations with exposure to major surrounding infrastructure projects are attracting

investors interest and this is converting to strong pricing outcomes for non-discretionary based

retail assets," Mr Tynan said.