$10m shopping centre sale

Investors continue to eye the retail property space, with the Glenfield Shopping Centre recently selling to an undisclosed buyer for $10.4 million.

Located north of Geraldton, the centre is anchored by an IGA and drive-through Cellarbrations liquor store, both on 10-year leases.

The centre also features eight additional specialty tenants.

CBRE director large format retail and retail services Richard Cash negotiated the sale, with a yield of circa 8.5 per cent, which he said reflected a secure long-term income stream of more than $800,000 per annum.

“Negotiations were conducted throughout a very challenging period in Australia due to COVID-19, with restrictions and regulations changing at a rapid rate,” Mr Cash said.

“We’ve seen additional pent-up demand due to the lack of quality assets that have come to market this year because of the global pandemic.

“There continues to be strong demand for non-discretionary and convenience neighbourhood shopping centres due to the defensive and recession proof nature of this asset class.”