Savills : North Lakes NightOwl Centre Sells for $6.7 Million

Acquisitive Sydney based RAM Group has swooped on a prominent retail convenience centre anchored by NightOwl in the fast growing suburb of North Lakes, north of Brisbane, continuing its strong run of acquiring dominant defensive retail assets through the second half of 2016.

The 100% leased retail centre features a NightOwl convenience supermarket as well as 10 speciality tenancies, including a BWS Bottleshop, Domino's Pizza, a sushi outlet, seafood takeaway and hairdresser, medical centre and dentist.

The property was sold for $6.7 million following an Expressions of Interest campaign handled by Jon Tysonand Michael Harcourtof Savills Retail Investmentsthat attracted more than 200 enquiries. The sale reflects a yield of about 7%.

Michael Harcourt said the NightOwl Convenience Centre at North Lakes is positioned on a high-profile 4,517sq m site on the corner of Discovery Drive and College Street. Discovery Drive is a major thoroughfare that connects to the main business precinct of North Lakes.

He said the centre benefits from excellent access and exposure in the high growth suburb of North Lakes and directly adjoins the Lakes Secondary College and a childcare centre.

'North Lakes is one of the fastest growing residential areas in south east Queensland and this property is prominently positioned to service the convenience needs of this rapidly evolving suburb,' he said.

'North Lakes and the surrounding Mango Hill catchment are forecast to grow by more than 1.5 times its current population to over 46,000 residents by 2036, representing an average annual growth rate in excess of 2.65%. The area continues to mature as evidenced by the new train line that provides commuters with direct access to the Brisbane CBD and greater Brisbane region.'

The NightOwl Convenience Centre at 1 College Street North Lakes was constructed in circa 2004 and features a total lettable area of 907sq m and on-grade parking for approximately 60 vehicles.

Mr Tyson said the centre features a weighted average lease expiry profile of five years by lettable area and income, with the majority of tenancies incorporating fixed 3.0% to 5.0% annual rental increases securing the centre's income growth into the future.

'This was a rare retail investment opportunity in one of Brisbane's key residential growth locations,' he said. 'The combination of the property's prominent corner position and dynamic tenancy mix was very attractive to a broad range of investors.'

'The response to this offering and the strong sale result highlights the continued investor demand for quality, high-exposure convenience retail centres in strategic locations with fast growing residential populations.'

The sale of North Lakes NightOwl complex adds to Savills strong track record in retail sales in northern Brisbane during 2016 with other sales including: Crossroads Complex at Strathpine for $8.25m; Anzac Avenue Retail Centre for $5.044m and two adjoining retail centres at Bribie Island which sold for $9.9m.