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.
"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.
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.