This article is from the Australian Property Journal archive
A FORMER Albury Bunnings Warehouse recently converted into a convenience retail centre site has been snapped up by Melbourne-based Collective Capital for $29.5 million.
Situated on a high-profile 14,250 sqm corner site on Young Street, on the Riverina Highway, the Albury Convenience Centre is anchored is fully leased to national retailers Harris Farm Markets and Amart Furniture.
JLL’s Stuart Taylor, Tom Noonan and Nick Willis brokered the sale on a yield of 6.21% on behalf of a syndicate managed by Findex – Financial Advisory and Accounting Services firm.
The property underwent a conversion and refurbishment completed in 2020, now providing a dual tenanted property wholly leased by national retailers Harris Markets and Amart Furniture. The newly opened centre comprises a gross lettable area of 9,690 sqm with 224 car parks on title is anchored by the 4,453 sqm flagship supermarket by Harris Farm Markets.
“The asset received significant market interest, with investors particularly attracted to the incorporation of a Harris Farm supermarket use into a large format retail asset,” Taylor said.
“The hybrid asset comprises a tenant mix which has been the key beneficiaries of changes in spending habits, being household good retailers and supermarkets.”
Convenience, neighbourhood and large format centres have continued their dominance of transaction activity in the retail sector.
Dale O’Dwyer, director of Collective Capital said the group invests in high growth locations and, in particular, properties that deliver both secure income streams and opportunities for yield uplift.
Taylor said the sale adds to the strong run of retail investment transactions in Australia’s regions.
“Demand is being driven by strong retailer performance in regional areas, resulting from population movements and changing consumer habits, overlayed with a shortage of metropolitan assets being presented to market. The increased demand is translating to higher deal volumes and significant yield compression.”