Investors go shopping with $27 million acquisition in Everton Park

Brisbane’s Everton Plaza has been earmarked for a major renovation after being sold for $27,700,000.

Brisbane-based private investors acquired the neighbourhood centre, which is situated in the inner city suburb of Everton Park.

CBRE’s Queensland retail investments team of Michael Hedger and Joe Tynan negotiated the deal following a competitive expressions of interest campaign.

The campaign attracted over 94 enquiries, both locally and offshore, with 11 formal offers to purchase tabled.

“Along with experienced retail property development firm, Reds Group, the new owners plan to reposition the Centre and to invest significant capital to turn the 1969 built centre into a popular retailing destination that supports the strong demographics within the Main Trade Area (MTA),” he said.

The well-established neighbourhood centre is anchored by a Coles supermarket and includes two mini-majors and 30 specialty retailers. Key tenants include the Everton Park Medical Centre, Fernwood Fitness, Australia Post, BWS, ANZ and Chemmart Everton Park.

Based on the current net income, the sale was struck at a yield of 7.1 percent.

“Buyers were attracted by the centre’s prominent location and affluent MTA, with household income being approximately 14 percent higher than the Brisbane metropolitan average,” he said.

“While the low cost of debt remains available, we will continue to see a gradual firming of yields, especially with centre’s that offer a significant value uplift with repositioning options.

Situated 9km north-west of the CBD, the property has a gross lettable area of 7,198sqm and is situated on a large inner city landholding of 17,504sqm, providing parking for 230 cars on grade.

It benefits from frontage to two major arterials - Stafford and South Pine Road - and is in close proximity to multiple transport links.

Reds Group spokesperson Bronwyn Timms said the focal point of the redevelopment of Everton Plaza would be a new casual laneway dining precinct known as Park Lane.

“The development is the vision of Reds Group, who has experience in delivering retail centres locally and nationally, including intimate food and beverage precincts,” she said.

“A key attraction for the buyer group was the centre’s strong inner city demographic which has been supported by the interest to date from some of Brisbane’s well known A-grade food & beverage retailers.”