Continuing a strong run of neighbourhood shopping centre transactions in Queensland, Ormeau Village, located on the northern Gold Coast, has sold for $37 million on a tight passing yield of 5.3%.

Ormeau Village was developed by Coles Group in 2019 and comprises a fully leased neighbourhood shopping centre of 5,003m2 GLA anchored by a 3,416m2 Coles Supermarket incorporating Liquorland plus 16 specialty tenancies and a weighted average lease expiry (WALE) of over eight years.

Savills’ Peter Tyson and Jon Tyson transacted the deal on behalf of Coles Group Property Developments, to an offshore private investor following an Expressions of Interest sale process.

“Ormeau Village transacted after attracting significant domestic and offshore buyer enquiry and bids from eight separate buyer groups,” said Peter Tyson.

Savills’ Peter Tyson and Jon Tyson transacted the deal on behalf of Coles Group Property Developments

“Bidders in the process included institutional and private investors as well as syndicate funds and totalled around $300 million in unsatisfied capital still seeking a quality neighbourhood retail asset, preferred for its resilient qualities underwritten by daily-needs and essential service businesses.”

Jon Tyson added, “Buyers were attracted to the high quality of the development, together with the long WALE security of the income stream underwritten by a rare net lease to Coles for a new 10-year term which included potential benefits from forecast supermarket sales growth within a reasonable timeframe coupled with strong catchment fundamentals of affluent young family households in a high growth inter-city corridor between Brisbane and the Gold Coast.”