Consolidated Properties Group and CVS Lane Capital Partners have sold Karalee Shopping Village in Ipswich for $76 million to an Australian-based Taiwanese investor.
The unconditional transaction was negotiated at a yield of approximately 5.5 per cent, with final settlement scheduled for October this year.
Managed jointly by CBRE and JLL, Karalee Shopping Village is the first asset sold from a wider six-property neighbourhood shopping centre portfolio brought to market across South East Queensland by CPG and CVS Lane.
Situated on a 4.6ha site at Junction Road in Chuwar, the 11,460sqm property operates as the primary retail hub for Ipswich’s north-eastern growth corridor.
The centre is anchored by Coles and Woolworths, which together account for 62 per cent of the gross lettable area and generate over $81 million in moving annual turnover.
CPG executive chairman Don O’Rorke noted that the sale crystallises value built over more than a decade of developing and repositioning the asset to match local population growth.
“Karalee’s sale reflects the successful execution of our long-term strategy to develop and reposition the centre in line with strong population growth and local community needs and crystallises the value that we have built into the asset over more than a decade of ownership,” said O’Rorke.
“The execution of an unconditional contract for the sale of Karalee Shopping Village marks a significant milestone and represents a pleasing outcome for investors,” added Lee Centra, CVS Lane CEO.
“The level of market interest received throughout the campaign also reinforces the ongoing appeal of well-located, non-discretionary retail assets with secure income profiles.”
CBRE state director Joe Tynan and JLL executive director Jacob Swan both said that the competitive bidding process and final sale price demonstrate strong institutional and private buyer demand for dual-supermarket-anchored neighbourhood hubs across South East Queensland.
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