This article is from the Australian Property Journal archive
A RECENTLY constructed Coles-developed Huntlee Shopping Centre in NSW Hunter Region has sold for $33 million to a Sydney based private investor.
The strong-performing Huntlee Shopping Centre occupies a 4,624ssqm site in North Rothbury and is anchored by a full-line Coles and Liquorland and is supported by an attractive non-discretionary tenant profile, which accounts for 82% of total gross rental income.
James Wilson and Ben Wilkinson from Colliers, alongside James Douglas from CBRE, managed the sale on behalf of Coles Group Property Developments.
“Huntlee Shopping Centre was secured by a sophisticated Sydney based private investor in a highly competitive Expressions of Interest campaign,” said Wilson.
“The depth of market is highlighted by circa $150 million in value of unsatisfied private capital still looking to be placed into the resilient neighbourhood shopping centre sector.”
The centre is 100 %leased with a total WALE of 8.4 years by GLA and an on-grade car park with approximately 230 spaces.
The Coles Supermarket is secured on a new 10-year net lease, with options until 2073, accounting for 66% of the centre’s gross rent income.
“The performance of Coles and opportunity for income growth through the lease term were key drivers to the pricing outcome,” said Douglas.
“Investing in the rapidly growing Hunter Valley region was also an attractive opportunity for potential investors.”
The centre sits within the Hunter Valley wine region, around 48km out from Newcastle and 180km from Sydney and Occupies a prominent 2.3-hectare site within the new Huntlee master planned community.
Coles had closed out 2023 by offloading Flagstone Village neighbourhood shopping centre in south east Queensland for more than $26 million to a high-net-worth private investor.
