Retail Team Newsletter I August Edition I Ray White Commercial Northern Corridor Group

NORTHERN CORRIDOR RETAIL UPDATE NORTHERN CORRIDOR GROUP AUGUST EDITION

With winning the Olympic bid, its time to satisfy the growing population

LEASING UPDATE National Franchises continued expansion over Queensland Do you have space for a Nation Tenant in your centre? The listing and leasing of Large format and Convenience anchored shopping centres over SEQ has brought with it more and more National Franchise connections, all seeking new locations for the growth of their respective businesses.

Further discussions with these strong tenant prospects have provided the retail team with a list of location requirements and an understanding on how each individual national franchise works. The retail team's better understanding allows for the cooperation between the National Franchise and Landlords.

Get in contact with our team today to discuss your commercial property

ELLENDALE SHOPPING CENTRE The Ellendale Village Shopping Centre is located in the fast growing Cedarwood Estate of Upper Kedron. The retail team have worked with the private developers to secure IGA, Medical, Pharmacy, swim School, National Franchise Cafe and other specialty retailers in this centre.

The Retail team have secured interest/ leased 90%* of the GLA prior to construction.

LINK TO INFORMATION MEMORANDUM

HERE

FEATURED PROPERTY 6/53 LAWNTON POCKET ROAD, LAWNTON National Tenanted Investment Opportunity Modern Tenanted Investment with 7.42% return in high-growth area.

Currently tenanted by Genesis Fitness Club until 2027 (with 2 x 5 year further options) this solid investment opportunity provides a secure income by a National tenant for many years to come.

With strong growth of residential property in the immediate vicinity, this is an area with a growing population. It's proximity to Brisbane ensures it is an area that people want to live. Located within the booming Moreton Bay

Unmatched premium location in the booming northern corridor

Exploding population in the immediate area

LINK TO INFORMATION MEMORANDUM HERE

Close proximity to road & rail

Minimal stock nearby

Modern building with concrete tilt slab construction

Strong national tenant with massive growth opportunities

J U S T S O L D - C A S E S T U DY

TYPE RETAIL

NLA 1,026M2

SOLD 25/06/21

ENQUIRY 317

OFFERS 11

SALE PRICE $4,125,000

MARKETING $1,868

YIELD 6%

CONVENIENCE RETAIL IN DEMAND

245 FRANCIS ROAD, BRAY PARK QLD 4500 The owner of 245 Francis Road, Bray Park. was motivated by the opportunity to develop other assets resulting in this dual grocery and childcare anchored centre being placed on the market.

When we were first introduced to the property, most tenants were on short leases and there were 3 vacancies including the grocery anchor. Attracting an IGA tenant to the centre has been pivotal in attracting new customers and improving both the WALE and income for the property.

Once re-negotiation of other leases was complete, we could achieve a great result for the property due to the certainty of strong leases investment.

J U L I E R YA N 0447 445 453

MAJOR ASSET SALES julie.ryan@raywhite.com

“COVID has driven consumers to local convenience centres and this has led to grocery-anchored retail being especially sought after,” said Julie Ryan.

“With 317 enquiries, convenience retail is in high demand.”

The sale confirmed there is a demand for similar properties if there are stable long-term leases in place.

LINK TO ONLINE SOLD LISTING HERE

D WA I N E B AT H E R N 0499 568 419

SALES & LEASING ASS OCIA TE d w a i n e . b at h e r n @ r a y w h i t e . c o m

raywhitecommercialnortherncorridorgroup.com.au

OLYMPICS UPDATE

Commercial Research

BETWEEN THE LINES BRIEF ….and the winner is South East Queensland

BRISBANE 21 VENUES

GOLD COAST 7 VENUES

SUNSHINE COAST 4 VENUES

Infrastructure

2021/22 BUDGET $27.5BILLION

EXPECTED SPEND $50BILLION

As the Tokyo Olympics commenced under strange and unusual conditions, Australian’s rejoiced as the announcement that the 2032 Olympics would be held in Brisbane (and more broadly South East Queensland).

What a great opportunity to shine the international spotlight again on our country but what is the cost and how could this impact our property markets?

There is no doubt we will see a large influx of capital into SEQ via infrastructure projects which will make

OLYMPIC INVESTMENT $5BILLION

BOOST TO ECONOMY $18BILLION

these Olympics world class but it will also benefit the local population into the future. We saw the impacts of the Sydney 2000 Olympics for our southern neighbour by way of capital value appreciation of both residential and commercial assets driven by improvements in road and rail infrastructure . The increased job creation will be a key stimulus for the economy through to 2032 creating new employment opportunities which will also benefit the property markets.

Under the 2032 Olympic master plan there will be three main hubs which the games will be split across, Brisbane, Gold Coast and Sunshine Coast with a number of venues dedicated to each hub. While the Gabba will be the focus for the games getting a $1 billion rebuild to upgrade and increase spectator limits, 84% of all venues will be existing, refurbished or temporary which will limit expenditure and improve viability.

Some of the new facilities include an aquatic centre in Brisbane CBD, indoor basketball facility, gymnastics venue and boxing centre in Moreton Bay while the athlete’s village will be spread across Hamilton in Brisbane as well as the Gold Coast, Sunshine Coast and Kooralbyn. According to the blue print for the games the $5 billion operating budget will be “cost neutral” but infrastructure expenses have been excluded as they are part of the ongoing infrastructure budget which will be over $50 billion in the medium term. Given the time sensitive nature of the Olympics, we will see commitment now for the completion of many projects which may have been pushed out beyond the next ten years.

With the SEQ already benefitting from an increase in interstate migration during this COVID-19 period, the expectation across SEQ is that the population will continue to grow especially for the Gold Coast and Sunshine Coast regions. These areas are already under pressure regarding transport infrastructure so advancement of projects such as the M1 duplication, Bruce Highway upgrade (including Sunshine Motorway) and rapid rail connection to the Sunshine Coast (previously known as CAMCOS corridor) will become increasingly necessary when the games arrive; while projects such as the Cross River Rail, Brisbane Metro and the Coomera Connector will already be up and running.

The detailed commitment of $27.5 billion in the 2021/22 budget highlights many of these projects over the next four years including over $9 billion in road infrastructure improvements across the motorways connecting these SEQ regions. Together with more than

RESEARCH Vanessa Rader Head of Research

$6 billion in improvements to rail across the Gold Coast as part of the Cross River Rail as well as Stage 1 of the North Coast Line improving access to the Sunshine Coast.

These improvements in infrastructure will be imperative for easy access across the region for the Olympic games but the long-term economic benefits will be felt further, growing business activity and future employment.

We have already seen improvements in the local Brisbane economy, but strong growth in business starts in both Gold Coast and Sunshine Coast regions has driven demand for commercial property, increasing capital values. We continue to see this region attracting talent given the liveability of these cities and affordable residential property prices however the benefit of a holistic transport system including both road and rail network connecting the whole of SEQ will ensure the future economic prosperity of the region.

THE JOURNEY TO 2032….

Population growth

4

New business starts

4

Employment growth

4

Residential property demand

4

Residential property price growth

4

Commercial property demand

4

Commercial property take up

4

The information provided in this report is in good faith and has been derived from sources deemed accurate. The reproduction of any information herewith is strictly prohibited without the prior consent of Ray White Commercial. This is general information only and should not be considered a comprehensive statement on any matter and should not be relied upon as such. Neither Ray White Commercial nor any persons involved in the preparation of this report accepts liability for its contents. All forecasts and estimates are based on a set of assumptions, which may change.

DELIVERING RESULTS

JULIE RYAN 0447 445 453 julie.ryan@raywhite.com

DWAINE BATHERN 0499 568 419 dwaine.bathern@raywhite.com

CHARLEE LIVESEY 1300 255 075 charlee.livesey@raywhite.com

We are always happy to customise our services to your requirements. The core services we offer you: Prospective tenancy mix and strategies

Investment sales and financial analysis

Negotiate the best possible sale price and terms

Advice on the most appropriate method of sale

Liaison with Asset & Leasing teams

Positioning the property for sale

Site sourcing, acquisition and disposals

Major tenant sourcing and negotiations

SUNSHI NE COAST

MORE TON BAY

PI NE RI V E RS

PROPE RTY MANAGE ME NT

Level 1, 172 Brisbane Rd,

3/125 Morayfield Rd,

4/257 Leitchs Rd,

9/113-137 Morayfield Rd,

Mooloolaba QLD 4557

Morayfield QLD 4506

Brendale QLD 4500

Morayfield QLD 4506