Park Ridge Town Centre, a neighbourhood shopping centre anchored by both Woolworths and Coles, has sold to a private investor in a transaction managed by Savills and illustrates the ongoing appeal of assets underwritten by non-discretionary retail.

With a sale price of $86million, the centre ranks as one of the largest ever price-points for the popular neighbourhood shopping centre asset class.

Perth-based private investors RG Property sold the asset after originally acquiring it in 2012, in a transaction also brokered by Savills.

RG Property purchased the centre as a single supermarket-based centre at the time anchored by Woolworths, and in 2016 undertook a major extension and upgrade of the centre to include an expansion of Woolworths as well as the addition of a new Coles supermarket, additional specialties and fast food and fuel pad sites.

An RG Property spokesperson commented “We were pleased to deliver a strong result for investors as this syndicate comes to an end. We have been able to deliver robust cash flows as well as strong capital growth over the life of this investment.”

Savills Australia’s National Directors Peter Tyson and Steven Lerche brokered the deal after receiving over 190 buyer enquiries through an expressions-of-interest campaign.

“The centre attracted enquiries from a wide buyer pool, including local, interstate and offshore investors,” Peter Tyson said.

“As a dual-supermarket anchored centre, Park Ridge Town Centre is unique in today’s marketplace. Invariably neighbourhood shopping centres feature single supermarkets. The scale and dominance of this high-performing centre relative to its peers was obvious.”

Steven Lerche added “The buyer was attracted by the centre’s dominance and strategic location in a major residential growth corridor, with 55 per cent of its income stream underpinned by Woolworths and Coles.”

Located in in the burgeoning southern Brisbane growth corridor, adjacent to the Mount Lindesay Highway, Park Ridge Town Centre is a rare dual-supermarket anchored centre totalling over 14,300sqm GLA featuring full-line Woolworths and Coles supermarkets. The fully leased centre featured a WALE of 8.13 years, providing strong security of income with a large site area of 62,450sqm.

In addition to Woolworths and Coles, the centre featured a Prices Plus mini major, 31 specialty tenancies together with KFC and Ampol pad sites.