The $11.75m sale of Home Central Retail Centre marks what is believed to be the first large format retail deal in regional NSW for 2017.
The $11.75m sale of Home Central Retail Centre marks what is believed to be the first large format retail deal in regional NSW for the 2017 calendar year.
The Australian property market is currently witnessing a limited supply of large-format retail assets for sale despite unwavering demand for properties within this retail subsector, as evidenced by Savills Jon Tyson, who recently brokered the off-market sale of the 6,500sq m retail complex in Coffs Harbour.
The availability of Home Central Retail Centre attracted immediate interest from multiple buyers, resulting in a low-key off-market deal.
“Savills was appointed to sell the asset via an on-market sale, however were able to produce several competitive bids as soon as the property became available,” Savills Director of Retail Investments in Queensland, Jon Tyson said.
The centre at 1 Gerard Drive in Coffs Harbour sold to acquisitive Queensland based OzProp Capital on a yield of approximately 7.6% and is fully leased with an 8 year WALE to national and chain brand tenants including Pillow Talk, Choice Variety, and Spotlight.
OzProp Capital Director, Jorgen Van Seters said “the asset suited our investor requirements with an attractive lease profile and tenant line-up, and complimented other existing holdings. Coffs Harbour also offers some attractive metrics and is one of the fastest growing and most dynamic areas within regional NSW.”
Mr Tyson said large-format retail centres were the best performing asset class of 2016 and the demand for these properties has not waned, however supply is currently limited.
“For a sector that was out of favour during the GFC and largely oversold, it has come full circle with a range of investor groups now actively chasing this retail asset class,” he said.
“We are seeing solid and ongoing demand for the limited number of large-format retail assets that are available, as evidenced by the strong sale result of Home Central Retail Centre, and the outstanding response to the $130 million national Good Guys retail portfolio, which Savills has recently taken to the market.”
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