The Bundaberg Central shopping centre, best known for housing Target, sold for $4.2 million with strong interest from across Australia in a show of confidence for the CBD.
A Sydney syndicator purchased the shopping centre at 13 Tantitha Street with the net area available for lease coming in at 5388 sq m.
Bundaberg Central shopping centre was marketed and sold by Ray White Commercial Queensland father and son duo Stephen and Elliot Kidd.
Stephen said the campaign was incredibly active throughout the expressions of interest campaign with enquiries and interest coming from across the country.
“The campaign attracted 60 enquiries and the eventual purchaser was a Sydney syndicator who was attracted by the low rent, Target lease, substantial income, and the capital upside that came with the opportunity,” Stephen said.
“With Target renewing their lease for five years in 2019 and the asset producing a net income of $480,000 per annum, this was an incredibly attractive proposition for investors.”
Bundaberg Regional Council Executive Director Economic Development Ben Artup said the sale of the Bundaberg Central shopping centre showed confidence in the local economy.
“The Bundaberg Region is a great place to invest and this significant sale shows confidence in the Bundaberg CBD,” Ben said.
“More investment means more money and more jobs coming into our region.
“This investment has a strong yield which proves the return you can earn in our economy.
“It’s also great to see Target has committed to a long term lease which shows confidence in our community and the future of retail in a regional CBD setting.”
Stephen said the COVID-19 pandemic had increased interest in the Sunshine State, with tenanted investments in regional areas proving popular.
“The seller was a Queensland syndicator rationalizing a substantial portfolio and finalizing some estates.”
Elliot said Bundaberg boasted a diverse range of natural resources, was a strong raw material producer, and had several natural attractions such as the Great Barrier Reef and the local pristine beaches.
“The Bundaberg region has 95,302 residents with a higher-than-average median age of 45 years of age,” he said.
“Property ownership is above average with over 66 per cent of residents either fully owning or being in the process of paying off their mortgage.
“This campaign certainly highlighted investor and institutional interest and an understanding that in regional areas, rents were more reflective of tenant turnovers and their capacity to pay, rather than metropolitan rents which reflected higher land costs but not necessarily higher sales performance.”