Simon Rooney of JLL has been exclusively appointed to sell Capalaba Central Shopping Centre in Capalaba, Queensland.
Capalaba Central is a highly accessible, convenience and service based sub-regional shopping centre occupying a major 10 hectare site within the metropolitan suburb of Capalaba, just 20 kilometres south east of the Brisbane CBD. The Centre is highly secure with major tenants accounting for approximately 67% of the total Gross Lettable Area (GLA) and a high representation of national and chain retailers.
The sub-regional shopping centre is being offered to market as JLL anticipates that 2015 will see fewer opportunities to acquire sub-regional centres following the high levels of transaction activity for this retail asset class during 2014 and 2013.
Simon Rooney, JLL’s Head of Retail Investments – Australia said, “We expect to receive strong demand for Capalaba Central given its metropolitan location and it being the first sub-regional centre to be offered for sale in 2015, with pricing in excess of AUD 150 million.
“The Queensland market has been very active through 2014 with AUD 1.7 billion worth of retail transactions recorded, an increase of 20% from 2013.
“Tenant demand for space is improving. JLL Research recorded a decline in the average South East Queensland vacancy rate (for specialty retail stores) from a high of 5.5% in Q4-2011 to just 3.9% in Q4-2014. The decline in vacancy has been particularly notable in the sub-regional and neighbourhood shopping centre sectors. Average specialty rents have now stabilised in this sector.
“Nationally, demand from investors for sub-regional centres has been strong with AUD 2.5 billion and AUD 2.3 billion transacting in 2014 and 2013 respectively. We anticipate there will be fewer opportunities to acquire sub-regional centres following such high levels of transaction activity over the last two years.
“Investors remain attracted to the high yields available for sub-regional assets relative to historical levels and other retail sub-sectors,” said Mr Rooney.