Major Coolangatta shopping centre for sale - JLL

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Jul 25, 2024

Major Coolangatta shopping centre for sale - JLL

JLL experts Nick Willis and Sam Hatcher have been appointed to market 'The Strand' for sale in the heart of the thriving Coolangatta precinct on behlaf of Vinta.

JLL

'The Strand' for sale by JLL
JLL

'The Strand' for sale by JLL
JLL

'The Strand' for sale by JLL
JLL

'The Strand' for sale by JLL
JLL

'The Strand' for sale by JLL

Located strategically between the globally recognised surf breaks of Snapper Rocks and Kirra, The Strand at Coolangatta, a 30,000 sqm mixed-use lifestyle centre, has officially launched to the market, capturing the attention of both domestic & offshore investors alike.

As the on-market supply of shopping centres for sale reaches record lows, Vinta – a private Sydney-based developer - has exclusively appointed JLL to handle the divestment of its landmark Gold Coast holding, The Strand at Coolangatta.

Not only is Coolangatta renowned for its breathtaking beauty and pristine beaches, but it is also hailed as the hometown of many of Australia's esteemed sporting legends, such as World Champion Surfers Mick Fanning, Joel Parkinson, and Steph Gilmour. Growing up surfing the very waves that crash directly in front of The Strand, these iconic athletes epitomise the vibrant surf culture that permeates the surrounding community.

Adding to its illustrious reputation, world-famous DJ Fisher recently wowed an impressive audience of 30,000 people, in an unforgettable experience at the Out 2 Lunch Festival, which took place directly in front of the centre.

Nick Willis, Senior Director at JLL Retail Investments Australia & NZ explained “Opportunities to acquire largescale dominant shopping centres in the heart of precincts like this are seldom available. Including The Strand, there are only six institutional grade assets that are genuinely located within the Gold Coast’s core of the beach precinct. The other five assets are either privately held by intergenerational owners or institutions that have long term holds.

The Strand provides an opportunity for investors to acquire an asset set to capitalise on the outstanding population growth and surrounding gentrification of this world-famous location, just minutes from the airport and new luxury residential developments.”

Positioned at the core of the thriving Coolangatta precinct, The Strand stands as a magnetic, multi-level entertainment and lifestyle destination. This iconic establishment seamlessly integrates with the historic and beloved "Cooly" Hotel, which has operated since 1911.

Additionally, it is supported by the renowned George's Paragon, an esteemed name in Gold Coast dining. There are 664 basement parking spaces, the largest in the catchment, servicing customers and the nearby world-famous beaches.

Anchored by Woolworths and supported by a range of daily needs tenants, the Centre also features Timezone and a brand-new state of the art Cinebar cinema which opened in 2023. As a surfing haven, the Centre further homes the surf famous Boardriders flagship store and a waterfront dining precinct overlooking Coolangatta Beach, the epicentre of dining in the region.

Mr. Willis commented on the makeup of the Centre “in addition to the strength of the retail mix, the Centre supports over 8,900 sqm of commercial and office space including the Coolangatta Library. Nationally the Gold Coast region is the third tightest office market with only 6% vacancy.

The fundamentals are strong, underpinning significant upside in the Centre’s income. Given the asset’s unique 200+ metre frontage, there are a number of immediate value-add opportunities to unlock.”

The Coolangatta precinct has seen a dramatic transformation, shedding its historical reputation as a slow surf-focused corner of the Gold Coast. Today, it has blossomed into a hub of opulence, hosting a slew of luxurious residential developments that rival some of the most esteemed in the country.

The area now serves as a backdrop to an influx of wealth, as it experiences a significant process of gentrification, solidifying its status as a sought-after destination for those of high net worth.

Growth on the Gold Coast has been exponential in recent years, led by positive interstate migration from NSW and Victoria. Housing prices in Coolangatta are up a substantial 74% in 3-years. Other supporting factors such as white-collar employment are at all-time highs, leading to higher incomes, spending and long-term growth along the Coast.

Sam Hatcher, Head of Retail Investments Australia & NZ at JLL, commented “South-east Queensland is experiencing unprecedented levels of demand as demographic growth and the lead up to the 2032 Olympics continue to drive heightened levels of interest from all active retail capital sources. Assets in this corridor are extremely tightly held, with the last sale of a large retail asset on the Gold Coast dating back to 2021.”

Mr. Willis continued “whilst the stock of +$100 million retail assets remains tightly held nationally, those being traded are typically in regional or non-core markets. The Gold Coast is a core market providing robust growth fundamentals aligned with the requirements of global capital investors. We are witnessing increasing engagement from investors for the sector.”

Sam Linden, Director at JLL Retail Investments Australia & NZ highlighted “our team’s independent research shows that the Coolangatta beachfront and surrounds comprise approximately 1,300 existing residential units with a substantial 2,800 further units in the pipeline (either planned or under construction).

Strong demand and interstate migration is leading to record sales being achieved, such as the ‘Awaken Residences’ development at 275 Boundary Street realising $9.4 million for its penthouse, a southern Gold Coast record.

This is flowing on to a rapidly improving demographic with income growth in Coolangatta at 52% over the prior two census dates, significantly outpacing the wider South-East Queensland average at just 35% over the same period.”

The Strand at Coolangatta is available for sale via international expressions of interest closing Wednesday, 21 August 2024.