Record $13.5M Repco Max asset sale sets new benchmark for QLD LFR market
A high-exposure retail asset in Brisbane’s bayside growth corridor has sold for $13.5 million, achieving the sharpest yield for a freestanding Large Format Retail transaction in Queensland so far this year.
The campaign was jointly handled by Colliers’ Harry Dever and Tim McIntosh, and Stonebridge Property Group’s Rorey James, Kevin Tong and Tom Moreland on behalf of Kinglake Group.
Transacted to a high-net-worth local investor, the sale of Repco Max Capalaba, located at 72–74 Redland Bay Road, reflects a tight 5.34 % yield and a record $7,017 per sqm GLA rate. The deal was struck following a competitive Expressions of Interest campaign that attracted more than 200 enquiries, 12 formal offers, and $132 million in unsatisfied capital.
Acquired for $9 million in 2024 by Kinglake Group, the property underwent a significant overhaul, with capital works to meet Repco’s operational requirements for their new-generation MAX store format.
Harry Nettlefold, Director at Kinglake Group, said, “We secured the asset off-market, capitalising on limited supply in a well-established retail precinct just 25 minutes from Brisbane’s CBD. With significant exposure and strong national retailer demand, it presented a compelling opportunity.”
The asset comprises a 1,924m² Large Format Retail showroom and a brand-new lease to Repco, a national automotive parts leader. It features a highly sought-after net lease with fixed annual rental reviews, providing income certainty and long-term growth.
Jamie Allen, Director at Kinglake Group, said, “It was a good result given the time, effort and capital invested in upgrading the building to suit Repco’s needs. The outcome validates our strategy of targeting value-add retail assets in tightly held corridors.”
The sale marks continued transactional momentum for Kinglake Group, following the successful $5.45 million divestment of Supercheap Auto in Fawkner last year, and the recent $19.5 million acquisition of the Sunbury Showrooms, a high-performing Large Format Retail centre anchored by national tenants.
Colliers Queensland Retail Middle Markets Associate Director Harry Dever commented, “This result highlights the sustained demand for premium retail assets underpinned by strong tenant covenants.
“With over 200 enquiries and 12 formal offers, the campaign was highly competitive. Four groups progressed to the second round, all submitting sub-6% offers, with the asset ultimately secured via a cash unconditional contract, setting a new benchmark for freestanding Large Format Retail assets in Queensland.”
Stonebridge Partner, Rorey James, said, “With the Capalaba campaign, we saw buyers represented from four different states, comprising investors, developers and land bankers, a clear sign that they have been starved of high-quality opportunities and are willing to be very flexible about what and where to invest their money in the current market. Activity from all buyer types has increased over the recent months which has been buoyed by recent and further forecasted interest rate cuts.”
