A private owner has placed its Woolworths and Big W anchored sub-regional retail centre in the Upper Hunter Region – Muswellbrook Marketplace – up for sale.
12,838sq m Sub-Regional first to hit the market in 2017
A private owner has placed its Woolworths and Big W anchored sub-regional retail centre in the Upper Hunter Region – Muswellbrook Marketplace – up for sale in a move calculated to take advantage of a strong retail investment market.
Boasting the single largest landholding in the regional city’s CBD, the 72-78 Brook Street, single-level mall comprises 12,838 square metres of building area on a 1.65 hectares of land and provides undercover parking for some 426 cars.
According to exclusive agents, Savills, headed by Steven Lerche and Andrew Palmer, the Centre dominates its catchment and includes a Woolworths Supermarket, Big W DDS, three mini majors and 28 specialty stores, and offers an estimated fully leased net annual income of $2.99 million.
Mr Lerche said he expected strong interest from investors given the dearth of sub-regional shopping centre assets currently available and particularly those which could offer such significant value add potential.
“Obviously Muswellbrook Marketplace offers exceptional income security through Woolworths Limited and Big W et al, but it also offers investors significant scope to add value through a refurbishment and remix and that is going to be particularly attractive to investors in what is set to be a busy 2017,” Mr Lerche said.
According to Savills Research, investors spent $6.5 billion on retail assets nationally in 2016, including $1.94 billion in NSW, pushing yields in some instances below 5 percent.
Mr Lerche said all indications were that demand for well-located assets with strong lease profiles, would be as strong or greater in 2017.
Mr Palmer said the Centre’s long term growth seemed assured given its position as the largest sub-regional facility in a trade area with a gross regional product exceeding $44 billion.
“These are solid figures which reflect the sound economic health of the region and the Centre’s prominent and central position within the Muswellbrook CBD and wider region,” Mr Palmer said.
The property will be sold by Expressions of Interest closing Wednesday, 8 March 2017.
Learn more about Savills Retail Investments.