This article is from the Australian Property Journal archive
THE Oatley Village shopping centre has entered the market, as convenience based retail assets continue to sparkle for investors, drawing in strong demand.
The centre, in Sydney’s south at 47-67 Mulgoa Road, in the tightly held and affluent suburb of Oatley, is fully leased with 3,523 of retail stratum, anchored by a Coles supermarket and Liquorland outlet, in addition to four specialty stores.
James Douglas, Joe Tynan and Michael Hedger from CBRE will manage the sale on behalf of Bayley Property Group, via an expressions of interest campaign.
“Neighbourhood shopping centres are tightly held and in high demand, particularly in Sydney, given their resilient and defensive nature, relative to other investment opportunities,” said Douglas.
The Coles group tenancies bring in 87% of the gross tenant income and make up 81% of the gross lettable area of the asset, with the group’s lease extending through to 2027, with two further 10 year options.
“The Coles anchor tenancy will be a key buyer drawcard for Oatley Village Square given the supermarket’s exceptionally strong trading performing, security of tenure and near-term payment of percentage rental,” added Douglas.
With IP Generation’s recent $300 million shopping spree on shopping centres in Sydney and regional NSW, proving the enduring confidence in this space.
“Oatley Village Square is the dominant centre in the primary trade area, and the only Coles supermarket offering. Coles’ performance provides the opportunity for future rental growth, as do the specialty tenancies, which have strong in-built annual rental reviews.”
The expressions of interest campaign for the Oatley Village Shopping Centre is set to close on 15 July.
