In what is believed to be Queensland’s first reported major shopping centre transaction in 2017, SCA Property Group has purchased the Mudgeeraba Market shopping centre on the Gold Coast for $35.8 million in a transaction brokered by Savills Peter Tyson and Jon Tyson.

SCA purchased the centre together with the adjoining Franklin Square retail arcade from longstanding local private owners who have held the properties since acquiring them in 1997.

The sale is understood to reflect a blended yield of 6.1% across the two properties and follows an on-market Expressions of Interest campaign conducted by Savills.

Savills National Director of Retail Investments, Peter Tyson, said “The campaign attracted strong interest from local private and institutional investors, as well as offshore investors, primarily from Asia.”

“The offering generated over 200 separate buyer enquiries, which is testimony to the depth of interest for this popular asset class and provides an indicator of the weight of capital targeting in the neighbourhood retail sector,” Mr Tyson said.

“Whilst the buyer was an Australian listed REIT, it was interesting to see numerous private investors from Asia competed for the offering, including bidders from China, Taiwan, Thailand and Singapore. Over recent years we have found the Gold Coast is increasingly on the radar of such groups as an investment destination.”

Mudgeeraba Market, originally constructed in 1993, comprises a 5,047sq m neighbourhood shopping centre, anchored by a 3,046sq m Woolworths Supermarket and features 26 specialty shops in an open courtyard. Franklin Square is a two level retail and commercial arcade comprising a further 16 tenants totalling 1,045sq m GFA. The centres featured a blended WALE of around 5 years.