Supermarket giant Woolworths Group has sold two of its newest neighbourhood shopping centres in South-East Queensland, to Brisbane private investors, for a combined price of $66 million amid continued demand for convenience-based retail investments.

Dakabin Shopping Centre, 27km north of the Brisbane CBD, sold for $40 million, representing a fully leased yield of 5.55%.

Bannockburn Village Shopping Centre, located between Brisbane and the Gold Coast, sold for $26 million, showing a fully leased yield of 5.52%.

Bannockburn Village Shopping Centre, QLD

CBRE’s Michael Hedger, Joe Tynan and James Douglas together with JLL’s Jacob Swan, Sam Hatcher and Ned McKendry brokered the deals via an Expression of Interest campaign which generated both national and offshore investment interest, receiving over 100 enquires and 15 formal offers.

“These sales are a reflection of the pent-up demand we are seeing from private investors seeking well-located neighbourhood centres that offer strong investment fundamentals and a diverse income profile heavily weighted towards towards non-discretionary specialty retailers and a long lease to a dominant supermarket tenant,” Hedger said.

Swan added, “Both shopping centres demonstrate strong growth and security of income, which ultimately attracted bidders across both assets. Despite increase lending criteria and volatility in some sectors of the market, neighbourhood shopping centres continue to provide the strongest hedge against inflation.”