This article is from the Australian Property Journal archive
COLES Group has listed the 2021-completed Andergrove Village Shopping Centre in Queensland’s Mackay for sale.
Located at 35 Oak Street in Mackay’s northern suburbs, the centre opened in 2021 and is anchored by a 10-year lease to Coles, which is the largest and top-performing supermarket in the main trade area, and which occupies 84% of the centre’s gross lettable area.
Andergrove Village is positioned on a 2.437-hectare landholding and includes a 4,800 sqm vacant parcel of land that could be used for additional specialty stores, or complementary uses including childcare, fast food, or a car wash.
CBRE’s Joe Tynan and Michael Hedger are managing the expressions of interest campaign on behalf of Coles Group Property Developments Ltd.
“Given the pent-up demand we are seeing in the market, particularly for brand new shopping centres, we expect Andergrove Village to generate interest from both domestic and international investors,” Hedger said.
“With construction prices rising, 780,000 sqm of future shopping centre supply is estimated over 2024 to 2028, less than half of historical average, positioning this nearly new asset well below replacement costs.”
Tynan said the additional allotment gives an incoming purchaser the opportunity to create long-term flexibility and accommodate the increase in demand in the trade area.
“We expect potential buyers to see this land as a long-term opportunity and significant upside for the existing centre.”
Coles Group has just offloaded the recently constructed Huntlee Shopping Centre in the Hunter Region of NSW for $33 million to a Sydney-based private investor, and closed 2023 with the divestment of Flagstone Village neighbourhood shopping centre in south east Queensland for more than $26 million to a high-net-worth private investor.
ASX-listed HomeCo Daily Needs REIT last month announced the $78.4 million and $74.7 million respective acquisitions of Woolworths-anchored neighbourhood centres in Kellyville and Leppington, Sydney, while in Victoria’s Geelong, Woolworths-anchored Pakington Strand sold on a sub-5.50% yield.
According to The Data App, the bulk of transactions across the wider retail sector in recent times have been for neighbourhood shopping centres.
