A local private investor has acquired a retail and medical asset in Flagstone, Queensland following a $25.35million transaction.
The previous owner, an offshore investor, saw a healthy reward from the sale with a sharp yield of 5.40%.
The asset is anchored by a joint 7-Eleven and Mobil fuel station with other tenants including a dentist, chemist and a family doctor’s practice.
Savills National Director of Retail Investments, Peter Tyson who helped manage the sale said the campaign generated over 200 enquiries during the expressions of interest campaign. The offering attracted multiple bids from more than $230 million worth of capital.
“The master planned community of Flagstone is one of the fastest growing areas in the country and assets such as these provide solid investment attributes,” Mr Tyson said.
Associate Director of Retail Investments, Michael Harcourt also helped managed the transaction.
“The demand for daily needs assets, especially medical based, remains strong as investors look for stable assets with income growth to withstand rising interest rates.”
Michael Harcourt, Associate Director of Retail Investments
Data from Real Capital Analytics, reveals healthy growth in retail transactions in the sunshine state with $578.2 million in retail transactions recorded in the year to June. This figure is up from circa $458 million for the same period last year.
Retail spending boosts activity in the retail property sector with $5.57 billion in transactions recorded in Queensland in 2021, up from $1.06 billion in 2020.
The transaction in Flagstone joins a number of recent retail sales including the fuel station in Bundaberg West sold for $2.57 million and large format retail asset in Brisbane which sold for 57 million.
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