Clarence Property pays $31.25 million for The Zone Shopping Centre in Underwood
Property fund manager Clarence Property has splashed out $31.25 million for The Zone Shopping Centre in Underwood, Brisbane, at a 7.85 per cent yield.
The Zone, leased to anchor retailers including OfficeWorks, Rebel Sport, Good Price Pharmacy and Best Friends Pet Warehouse, will go into Clarence Property’s flagship unlisted Westlawn Property Trust.
Mr Fahey says Underwood is a good fit for WPT, which has more than $250 million in assets between Yamba and the Sunshine Coast.
“Our target asset allocation for WPT is about 30 to 45 per cent retail, with a focus on high-yield neighbourhood shopping centres in growth regions,” he said.
“We started in Grafton more than 24 years ago, and while we still have a strong presence in northern New South Wales, we are making a push into south-east Queensland, with about 55 per cent of the Trust’s portfolio now located across the region.
“Underwood was particularly attractive as it is positioned at the corner of a high traffic intersection, next to Queensland’s largest new Bunnings store, which is due for completion in September.”
The Zone is a sub-regional large format shopping centre 16 kilometres south of the Brisbane CBD.
It is made up of four buildings of about 11,000 square metres on a 2.85-hectare site on the corner of Compton and Kingston roads.
It opened in 2005 and, on top of the anchor tenants, is also home to three national mini-major retailers and 12 specialty tenancies, including Subway and the Cheesecake Shop.
It also sits adjacent to a new Bunnings store.
CBRE’s Joe Tynan, Peter Rossi, Michael Hedger and Nick Willis negotiated the sale of the property for a private Queensland investor.
