A CLEVELAND shopping centre anchored by Red Rooster and Domino’s has hit the market with a potential annual income topping $1 million.
Cleveland Marketplace, at 2-20 Shore St West, is being offered for sale through an expressions-of-interest campaign run by JLL Retail Investments.
The 5045sqm neighbourhood centre currently delivers a net operating income of $755,388 a year, with JLL estimating that could rise to $1.05 million if its vacant space is leased.
Sitting on a 6682sqm site, the centre includes a mix of food, convenience and service businesses and is being pitched to investors as a value-add opportunity in one of Redlands’ key growth areas.
JLL executive Liam Cox said the Red Rooster and Domino’s combination would be a major attraction.
“Having both Red Rooster and Domino’s is significant,” Mr Cox said.
“Both tenants sit at the top of their categories nationally, with Domino’s also being a leader internationally.
“This creates a powerful combination of high rental and secure income growth that will drive investor demand.”
The centre has a weighted average lease expiry of 1.66 years, giving a future owner the chance to boost returns through new leases and active management of the site.
JLL said fast-food investments remained hot property, with 27 transactions worth more than $143 million recorded nationally this year.
Queensland accounted for 10 of those sales with the average passing yield sitting at 4.86 per cent.
Associate director Ned McKendry said neighbourhood centres had become more important as hubs for everyday shopping, health and services.
“With record-low vacancy in the sector and a constrained supply pipeline, the runway for rental growth is significant,” he said.
“This asset’s large land holding also offers future flexibility, subject to council approvals.”
JLL Research forecasts Redland City’s population could grow by more than 25,000 people in the next decade.
Expressions of interest for Cleveland Marketplace close at 4pm on Thursday, November 12.
