The Pinnacle Pines retail centre situated at Pacific Pines on the northern Gold Coast has sold to a local private investor for $19.7 million, with the sale following a string of recent fuel and convenience retail transactions on the Gold Coast.

The off market transaction of Pinnacle Pines retail centre was handled by Peter Tyson and Michael Harcourt of Savills on a tight yield of 5.47 percent.

Anchored by a 7-Eleven Service Station and a freestanding McDonald’s drive-thru restaurant, the centre has a total gross lettable area of 1,678sq m across four buildings, and features eight other complimentary tenancies including a Zarraffas drive-thru, Noodle Box, Baskin Robbins and Subway, plus a medical centre, dentist and veterinary clinic.

Savills National Director of Retail Investments, Peter Tyson said “We placed the asset privately as the vendor preferred a “no fuss” off market divestment and this attracted several bids.”

“The centre appealed to the local buyer due to its strong tenant line up and high profile position at the entrance to the Pacific Pines community. As a master planned community, Pacific Pines has a tight planning framework and the centre hierarchy is protected.”

The Gold Coast has seen strong transactional activity of late within the fuel and convenience retail sector including the sale of a McDonald’s and 7-Eleven service station on the Gold Coast Highway at Palm Beach for $8.525 million, in a deal also negotiated by Savills, as well as that of a 7-Eleven service station at Pacific Fair for $10.1 million, and the United Petroleum service centre at Labrador for $8.975 million.

“These sales are reflective of the continuing high levels of demand for high quality national tenant covenants offered by the fuel and fast food sector,” Mr Tyson said.

“2017 is an active year for the Gold Coast with other sales concluded by Savills in recent weeks including the Mudgeeraba Market shopping centre for $35.8 million and the Worongary Town Centre for $46.3 million.”

Savills is also handling the sale of a new freestanding Coles supermarket at Pacific Pines, in what is expected to be Queensland’s largest ever retail auction. Coles Group Property Developments developed the 3,717sq m store which opened to very strong performance in late 2016.

Mr Tyson said “the offering was unique in today’s marketplace and had already attracted strong interest. With a 15 year net lease to Coles, this is a trophy asset for risk averse investors.”

The public auction is to be held on 20 July at the Sheraton Grand Mirage on the Gold Coast.