Gordon Corp secures $72.5 million for landmark Burleigh retail property

Gordon Corporation has achieved an impressive price tag for the sale of a landmark commercial property at Burleigh Heads, selling the Burleigh Home + Life centre for $72.5 million.

A private Gold Coast family has fended off competition from national investors to snare the prized asset.

The deal, negotiated by Colliers Steven King and James Wilson in conjunction with JLL’s Jacob Swan, Sam Hatcher and Ned McKendry, represents the highest price paid for a large-format retail centre in Queensland in more than three years amid a highly competitive Expressions of Interest campaign that drew interest from institutional players.

Burleigh Home + Life, a high-profile centre anchored by major retailers Anaconda, Autobarn and Beacon Lighting, is located at 197-207 Reedy Creek Road adjacent to the major Stockland Burleigh Heads shopping centre.

The property, which was formerly a part of the Kaufland divestment, has been sold by diversified Gold Coast property and investment group Gordon Corp who repositioned the site as a lifestyle retail centre.

The Home + Life centre was one of three high performing retail centres in Southeast Queensland placed on the market by Gordon Corp in March.

Gordon Corp, headed by Tim Gordon, is a diversified property and investment group with an extensive portfolio of commercial, residential and mixed-use developments nationally.

The sale of Burleigh Home + Life has been struck at a capitalisation rate of 4.68 per cent, with the property delivering a net annual income of approximately $3.39 million fully leased and a WALE (weighted average lease expiry) of 8.3 years.

With a net lettable area of 11,656sqm and a site area of 3.285ha, the property offers the buyer a strategic holding in the retail-industrial heart of Burleigh Heads, one of the Gold Coast’s most exclusive and sought-after catchments.

“It is incredibly exciting that a local family was able to fend off Institutional Capital after having been pipped on several occasions on similar offerings,” said Steven King, the Gold Coast Director in Charge at Colliers.

“The local families acquisition reflects the high quality of the development, and depth of capital targeting retail investments within the Gold Coast”

Anaconda, Autobarn, and Beacon Lighting occupy more than 85 per cent of the net lettable area of the Burleigh Home + Life centre, which also counts RSEA Safety and Choice the Discount Store as major tenants.

“The EOI campaign for Burleigh Home + Life highlighted the strong depth of market for high quality Large Format Retail Centres, with over $500 million in value of offers received from private and institutional investors. Aggressive bidding resulted in multiple parties making offers below 5% yield.” said James Wilson, National Director of Retail Investment Services at Colliers.

“The centre is supported by an effective tenancy mix comprising non-discretionary retail, medical services and food and beverage facilities,” said Jacob Swan of JLL.

“It ticks the boxes in terms of internal investment parameters for many private and institutional investors who are looking to secure premium commercial assets in the Gold Coast market.

“Convenience-based assets offer resilient income streams and a non-discretionary tenancy base, providing investors with confidence despite inflationary economic conditions. It is these assets that will continue to outperform throughout 2022.”