Retail Investments
A Brief Retail Investment Sales Review.
The return of positive net immigration and stabilisation of online sales are providing tailwinds for the retail sector. Sales volumes across all retail sub-sectors are down from strong volumes in 2021 & 2022 as investors grapple with the impact of inflation on customer spending patterns as well as the effect of rising interest rates and how capital markets priced this risk. Buyer demand continues to be strongest for Neighbourhood Centres due to lower price point and tenant weighting to non-discretionary spend, however; increased interest in Sub-regional and Regional Centres is gaining momentum as investors chase higher yielding assets that typically are characterised by large land holdings providing mixed-use opportunities.
70 Eagle Street, Brisbane
Price: $110,000,000 Rate / sqm: $9,585 Initial Yield: 9.68% WALE: 0.76 Years Occupancy: 100% Vendor: Pembroke Purchaser: Confidential Client
21 Genge Street, Canberra
Price: $290,000,000 Rate / sqm: $6,704 Initial Yield: 7.66% WALE: 5.24 years Occupancy: 100% Vendor: Real IS Purchaser: Charter Hall
30 Pirie Street, Adelaide
Price: $73,000,000 Rate / sqm: $3,080 Initial Yield: 15.66% WALE: 0.36 Years Occupancy: 100% Vendor: Australian Unity Purchaser: Quintessential Equity
33 Queen Street, Brisbane
Price: $37,600,000 Rate / sqm: $6,726 Initial Yield: 6.75% WALE: 2.66 years Occupancy: 93.6% Vendor: Abacus Group Purchaser: Mackwell
