JLL sells Parkes Arbour Shopping Centre with a significant vacancy from Target’s 2021 national store closure.
Parkes Arbour Shopping Centre has sold for $8.9 million to a Sydney-based private investor, as demand for neighbourhood centres with value-add opportunities continues to outstrip supply.
JLL’s Sebastian Fahey, Dylan McEvoy, Nick Willis and David Mahood sold the shopping centre via an Expressions-of-Interest campaign on behalf of a Brisbane-based private investor.
In 2021, parent company Wesfarmers announced the closure or rebranding of more than 160 sites with many of the locations being rebranded to Kmart/K-Hub. The increasingly competitive market was too much for the Target business with landlords scrambling to backfill the vacancies.
Parkes Arbour is anchored by a Coles supermarket and supported by a Liquorland and two speciality retailers. The asset included a 4,019sqm vacant ex-Target space, allowing an opportunity to reposition and or redevelop the centre.
“Parkes Arbour Shopping Centre offered the purchaser an attractive repositioning play with the potential to significantly increase the centre’s income by splitting the major vacancy into smaller offerings. This resulted in the campaign attracting unprecedented demand for a regional neighbourhood centre with over 200 groups and 10 offers being received at the close of the campaign.”
Colleague David Mahood added “Parkes Arbour reaffirms the increase in demand for retail assets with value-add initiatives. Investors are continuing to seek these opportunities as they provide a secure holding income with significant upside through a repositioning.”