IGA covenant continues to show strength in Queensland

The only shopping centre in one of Queensland’s most historic mining towns has sold under the hammer for $2,035,000 with Ray White Commercial QLD.

The IGA Collinsville Plaza was anchored by a 1,018sqm IGA leased for 10 years to Cornetts Supermarkets, the largest operator of IGA’s in Queensland, along with four other specialties, two of which are vacant.

Despite market concerns about the future of the mining industry and the impact of rate rises, Ray White Commercial QLD agent Lachlan O’Keeffe said the centre’s drawcards allowed the buyer to look beyond these concerns,

“The opportunity to purchase a centre with a 10 year lease to Cornetts is extremely hard to come by, and, with Cornetts being at the centre for 27 years, it gave buyers great confidence in this investment,” Mr O’Keeffe said.

The auction attracted plenty of interest with the centre eventually selling to a Queensland private investor who was bidding over the phone while travelling in the USA.

Co-agent Michael Feltoe said the result demonstrated the continued appeal of the IGA covenant irrespective of location.

“Despite Collinsville only having a population of just over 1,200 people, the campaign generated over 120 enquiries, which equated into four registered bidders who were competitively bidding on the day.”

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