Brisbane based developers Capital Transactions & Alceon, having received strong early market interest for their major 27,000 sqm, sub-regional shopping centre development at Redbank Plains, have exclusively appointed JLL’s Simon Rooney & Sam Hatcher to conduct an off market sale process closing mid-July, with sale expectations in excess of $145m.
The Town Square process follows a very strong start to 2015 for major retail asset transaction activity totalling in excess of $1.84bn nationally, following the recent sales of Capalaba Central, QLD by Dexus to the Shayer Group for $148.5m, the Myer Centre, Adelaide by Novion to Singaporean based YTL Starhill REIT for $288m and Precision Group’s recent purchase of the Chevron Renaissance for $73.2 m from Arena.
“The Queensland market was very active through 2014 with $1.7 billion worth of retail transactions recorded, an increase of 20% from 2013, and significantly higher than the 10-year average of $1.0 billion. The high levels of retail activity have continued into 2015, with over $838 million in transactions already recorded in Queensland, reaching close to the long term annual average in the first five months of the year.
Upon completion scheduled for September 2016, Town Square, Redbank Plains will comprise approx. 27,000 sqm of GLA and include Woolworths, Coles, & ALDI supermarkets, a Target DDS, together with 2 drive-through tenancies, a large format tenant precinct, specialty tenancies and at grade and basement car parking for over 1,200 cars.
Post completion, the centre has the strategic capacity to accommodate future expansion of the ground level retail and additional car parking. Town Square, Redbank Plains will be prominently positioned at the major traffic intersection of Redbank Plains Road, Jones Road and Keidges Road, with Redbank Plains Road undergoing a significant transformation to a four lane arterial road, being the main & strategic connection from Springfield to the Ipswich CBD.
The centre will serve a significant trade area estimated to be in excess of 50,600 residents, including 28,600 in the primary trade area, with robust forecast population growth to nearly 65,200 persons in the next decade or an estimated 2.3% pa. JLL’s Head of Retail Investments for Australasia Simon Rooney, said, “Brand new sub regional investment opportunities in major population growth corridors with additional development potential are seldom offered and we expect strong demand from the major institutional retail owners both domestic and abroad, being the only new sub-regional development above $100 million to be formally offered for sale in 2015”.
“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”, said Mr Rooney.