SIGN OF CONFIDENCE: Bundy shopping centre sells for $28M
BUNDABERG'S Coles Kensington shopping centre has sold to Asian investors for $28,500,000 in a move that shows shopping centres in regional areas are attracting strong interest as sources of investment.
The sale of the mall, which was previously a Bunnings before reopening as Stockland Kensington in April 2017, settled in April this year.
Brisbane-based Queensland Retail Investments state director Peter Rossi, who oversaw the sale, said there was strong interest in the property.
"The property went through a full marketing campaign, we had significant interest from a number of parties, in Queensland and national," he said.
"There were a good number of bids."
Mr Rossi said the investors were an Asian group with roots in Brisbane.
The buyers, who purchased the property under an expression of interest, are listed online as Central Fair No. 3 Pty Ltd.
Mr Rossi said there was a strong interest in retail investments in regional centres due to the security offered by non-discretionary services - meaning things like food and everyday essentials.
"There's big interest in shopping centres in the regions," he said.
"The Coles at Kensington is the only free-standing chain supermarket in Bundaberg and offers a higher level of convenience than Stockland and Hinkler.
"All a shopping centre needs is a good population base."
Mr Rossi said as an investment, the property offered a 6.73 per cent yield.
"It's a very strong trading supermarket attracting a high number of customers which makes the speciality shops sell well," he said.
The shopping centre features a Reject Shop, Liquor Land and other smaller shops and services including a bakery, nail salon and eateries.
A new sushi shop is also set to open at the centre soon.
When construction was completed in April 2017, the property was offered with an adjoining land parcel of 9,372sq m, providing potential future expansion.
Stockland invested $30 million into its Kensington complex.
A third quarter market update, reported in April, revealed the sale of Coles Kensington had contributed to Stockland's $284.5 million in non-core retail divestments.
Stockland Bundaberg, previously Sugarland Shoppingtown, remains under the Stockland banner.
Coles Kensington income$1,749,510 pa
Land area30,262sq m