Family development group Horwell Property Investments has purchased Westpoint Shopping Centre in Browns Plains, Queensland for $46.50 million. The deal, brokered by CBRE’s Joe Tynan and Michael Hedger achieved a yield of 5.44%.

Located 21km south of the Brisbane CBD, Westpoint Shopping Centre is in a prominent retail hub that services both the Brisbane and Logan LGAs. The catchment within a 5km radius of the centre is expected to increase by 12.7% across a 10-year period to 2032.

The fully leased 5,978m2 neighbourhood shopping centre is secured by a long-term, 20-year lease to Woolworths supermarket and supported by national and chain specialty tenants, representing 73% of the gross income.

The asset attracted interest from onshore and offshore investors during the Expressions of Interest campaign.

“The growth characteristics displayed by the centre resulted in a strong yield despite the current state of the retail investment market which has seen a marginal softening due to the increasing cost of capital, following the RBA’s gradual increases to the cash rate since May 2022,” Hedger said.

Tynan added, “The high-performing Woolworths is extremely close to achieving turnover rent, with the property also offering significant development upside given the low site coverage and there is already a DA approved for a 432m2 proposed tenancy. This was a draw card for prospective purchasers, with growth prospects at the forefront of investment decisions.”

“The projected population growth in the catchment, as well as the centre’s fully-leased tenancy profile, long history of tenant retention and 6.5-year WALE were also critical to the appeal of Westpoint, providing a secure income profile.”

The success of the transaction comes off the significant amount of private investor interest generated from recent campaigns such as Rochedale Village and the Zone Underwood.