Sunshine Coast Shopping Centre Sold at Auction for $6 Million
A fully tenanted shopping complex at Tewantin on the Sunshine Coast has been sold at auction for $6 million after being put on the market for the first time since it was built more than 20 years ago.
The Noosa Outlook Shopping Centre at 63 St Andrews Drive, Tewantin, was sold to a private investor by Ray White Commercial Noosa and Sunshine Coast North Directors Paul Butler and Paul Forrest on behalf of a local investor for a passing yield of 7.0 per cent.
Paul Forrest said the marketing campaign for the IGA Supermarket anchored shopping complex attracted almost 100 enquiries and there were eight registered bidders at the on-site auction.
“More than 50 people attended the auction and we had particularly strong interest from local investors who recognised the strength of the centre which is returning net rental income of approximately $421,000 per annum,” he said.
“The sale price represents a yield of 7.0 per cent and reflects the future potential of the property to capitalise on the strong catchment area.
“The complex has a low tenant turnover even though it has a soft weighted average lease expiry (WALE) of 1.75 years. A number of the 14 tenants want to increase their floor areas significantly.”
Paul Butler said it was the first time the complex had been offered for sale since it was built by the current owners in 1993 after they purchased the 7,559 sqm site in a mortgagee sale the previous year.
“The site offers 91 car parking spaces but less than 20 per cent of the site is fully utilised with the main building offering a net lettable area of approximately 1,474 sqm,” he said.
“It is a very well patronised shopping centre which is situated in a large residential catchment.
“The shopping complex is located at the centre of the Noosa Outlook estate, which is Tewantin’s largest residential locality.
“Lend Lease’s Hibiscus Noosa Outlook Retirement Resort which has 234 Villas of 1, 2 and 3 bedroom units, directly adjoins to the east.”