The Logan Village shopping centre, anchored by Woolworths, recently changed hands in a significant deal valued at $16.3 million. Clarence Property, the fund manager, orchestrated the sale to a private investor based in Sydney. The transaction was facilitated by CBRE’s Joe Tynan and Michael Hedger, with the sale price reflecting a 5.07% yield. The shopping centre boasts a robust Weighted Average Lease Expiry (WALE) of over 8.6 years and has 86% of its Gross Leasable Area (GLA) under the tenancy of Woolworths, making it a dominant player in its catchment area.
The sale process attracted considerable interest from both local and international investors, with over 130 inquiries and 11 formal offers received, including six from new offshore investors. CBRE’s active capital portfolio now exceeds $128 million, underscoring the growing demand for neighborhood shopping centers. The sale of Logan Village aligns with a broader trend, with CBRE reporting a 50% increase in retail sales totaling $204 million in Q1 2025 compared to the same period last year.
The purchaser, a first-time investor in Queensland, was drawn to Logan Village due to its price point and the limited number of specialty tenants. Approximately 70% of buyer inquiries originated from new market entrants, indicating pent-up demand for such assets. The fully leased shopping center spans 3,241 square meters and features a diverse tenant mix, including a medical center, pharmacy, newsagency, and fish and chip retailer. Notably, the Woolworths Supermarket, occupying 2,794 square meters under a 20-year lease, accounts for 72% of the gross rental income.
Strategically located in the Brisbane to Gold Coast growth corridor within Queensland’s fastest-growing Local Government Area, Logan Village is poised for continued expansion. With the current population exceeding 340,000 and projected to surpass 600,000 by 2046, reflecting a 76% growth rate, the area presents a compelling investment opportunity. The purchaser’s interest in Logan Village underscores the attractiveness of dominant shopping centers in high-growth regions.
The successful sale of Logan Village complements other recent transactions in the retail property market, such as the Greystanes Shopping Centre changing hands for $76 million and ISPT’s Katoomba Village being listed for sale. These developments reflect the ongoing dynamism in Australia’s retail real estate sector, driven by evolving consumer preferences and economic trends. As investors continue to seek stable returns in commercial property, assets like Logan Village present promising opportunities for growth and diversification.
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