This article is from the Australian Property Journal archive
A COLES-anchored metropolitan neighbourhood shopping centre has hit the market, as investor demand remains strong for convenience-based assets.
Schofields Village is located on a 16,800sqm landholding at 227 Railway Terrace, around 45km north-west of the Sydney CBD, with by a diverse mix of 16 convenience retailers including a medical centre, pharmacy, childcare centre and numerous national food and beverage operators supporting the strong performing Coles supermarket.
The asset is 100% occupied with a WALE exceeding eight years, with Coles recently signing on to a new 10-year net lease through to 2033, with options until 2083.
Nick Willis, Sam Hatcher and Sebastian Fahey from JLL have been exclusively appointed to sell the asset via an expressions of interest campaign on behalf of the vendor, Coles Group Property Developments.
“It is unique to offer for sale a brand-new shopping centre, especially in the heart of metropolitan Sydney. Schofields Village has been developed without compromise and will set the benchmark nationally for convenience-based retailing,” said Willis.
“The outstanding performance of the centre has and will continue to reap the benefits of the surrounding uber population growth, and in turn provide significant income growth.”
The December 2011-completed centre also features leading shopping centre technology measures including controlled parking indicators, solar panels, electric vehicle charging stations and the new Coles Online Click & Collect drive through.
While the site includes favourable development controls enabling an additional circa 2,000sqm of Gross Floor Area in the future (STCA).
“Further to the security, performance and depreciation benefits of the asset, the offering provides significant growth opportunities, given its position in the booming Western Sydney growth corridor. The centre is set to capitalise on more than 6,500 units planned for development with a 1.8km radius of the centre’s total trade area,” added Willis.
The asset is the dominant shopping centre in its catchment and sits within close proximity to the Schofields Train station while also having access to amenity in the broader Western Sydney precinct.
“We have seen a real shift in investor demand towards these convenience-based assets given their resilience over the past few months,” said Hatcher.
“Difficulty in this sub-sector is the availability of quality assets, with current volumes down approximately 54% from the record-breaking sales volumes in 2021. This offering to the market is an opportunity for investors to acquire a trophy generational asset.”
The expressions of interest campaign for Schofields Village is set to close on 15 March 2023.
While last week an AMP Capital managed fund listed another 50% interest in dominant major regional shopping centre, Stockland Townsville.
