SCA buys in South Brisbane

Shopping Centres Australia Property Group has acquired Greenbank Shopping Centre in South Brisbane for $23 million in a deal that included an adjoining 10ha development site for an additional $10 million.

The 5690 sqm centre on the corner of Teviot Road and Pub Lane opened in 2008 and is anchored by a strongly performing 3970 sqm Woolworths supermarket, and includes a Woolworths Plus Petrol and 17 specialty stores.

SCA Property Group chief executive officer Anthony Mellowes said that an expansion of the centre is likely. Current planning regulations provide for an expansion of up to 2.20 hectares of additional gross floor area.

The transaction was negotiated by JLL’s Sam Hatcher and Jacob Swan in conjunction with CBRE.

According to Hatcher, the strong yield of 6.61 per cent reflects the “highly desirable long-term lease to Woolworths, the reversionary income potential of the specialty tenants and the long term WALE for the centre of 10.77 years.”

Hatcher noted that the centre is located within one of Queensland’s major future growth areas, with the population expected to grow by 6.5 per cent, and retail expenditure by 10.0 per cent per year over the next decade.

SCA Property Group owns 82 shopping centres throughout Australia and New Zealand.

JLL said neighbourhood centres will continue to attract institutional investors in 2016, due to attractive yields relative to other retail sub-sectors and other property sectors.