Buyers pumped over new service station and retail

The first two retail stages of Crestmead Village, in the heart of a $1.5bn logistics estate, sold pre-auction as demand remains high for quality assets.

Developed by Zen Group at 154-162 Clarke Rd, a Melbourne investor paid $5.84m for the Stage 1 Caltex convenience retail centre and a local investor paid $7.275m for Stage 2 tenanted by Stellarossa, Anytime Fitness and City Cave.

Burgess Rawson’s Andrew Havig, who struck the deals with Campbell Bowers a couple of days before their October National Portfolio auction, said Stage 1 realised a tight 5.2 per cent yield and Stage 2 a 5.83 per cent yield.

He said there was great interest in Crestmead Stage 1 and 2 due their strategic location within Logan’s $1.5bn Crestmead Logistics Estate.

“The fact that they were brand new with quality tenants was also a strong attraction,” he said.

The sale was underpinned by a weighted average lease expiry of 11.75 years.

According to Zen Group there was third stage of Crestmead Village at 148-154 Clarke Rd to be developed.

In the City of Logan, the 157ha nine-stage Crestmead Logistics Estate will have 650,000sq m of warehousing, business, logistics and manufacturing space. It will create more than 6000 jobs over the next five years.

Mr Havig said there was currently a divergence between prime and secondary and the “good and not so good assets”.

“New, well-positioned assets with good tenants remain in strong demand despite rising interest rates,” he said.

“It’s the assets with hairs on them and a bit neglected that are harder to sell.”

Burgess Rawson’s Andrew Havig at Stage 1 – a Caltex convenience retail – at the Crestmead Village development.