This article is from the Australian Property Journal archive
DARWIN-based developer Gwelo Developments is expecting more than $90 million from the sale of its Coolalinga Central sub-regional shopping centre, located on the outskirts of the Northern Territory capital.
Built in 2017, the 20,034 sqm centre is anchored by a 3,990 sqm Coles supermarket and a 5,629 sqm Kmart, and has five mini-majors including iFitness, Chemist Warehouse, Mad Harry’s and The Salvation Army. There are also 37 specialty stores, ten kiosks, ATM, and nine pad site including McDonald’s, Hungry Jacks and KFC.
The majors, mini-majors and pad sites account for 69% of the centre’s income, while together Coles and Kmart have a 12.69 year weighted average lease expiry by income and 10-year option periods. Fully leased, the centre would return an estimated net annual income of $7.17 million.
Coolalinga Central is on a 77,100 sqm Stuart Highway site around 30 kilometres south-east of Darwin’s CBD and includes parking for 1,240 vehicles with 776 undercroft spaces.
Some 16,500 sqm of vacant land has been allocated for stage three of the shopping centre development that marketing agent Mark Wizel of CBRE said added to the centre’s long-term investment credentials, while the basement works and at-grade car park for the expansion land are largely complete meaning the new owner should benefit from reduced construction costs and improved development feasibility,
Wizel is handling the expressions of interest campaign with CBRE colleagues Justin Dowers and Trent Weir, which closes on 1st August.
“This is a near brand new centre with a blue chip tenancy profile on the NT’s busiest road and one that offers investors exceptional income growth potential as well as genuine development upside,” Dowers said. “The centre has limited competition and offers its customers a full range of retail services within a very attractive, enclosed, all weather, complex that is essential to a successful operation in this part of the world.”
Wizel said the centre was well positioned to attract spending from passing traffic from within and external to the trade catchment area, as well as benefiting from population growth and high disposable income.
More than 17,150 vehicles pass the centre’s 400 metre frontage to the Stuart Highway each day, and the centre serves a catchment of around 63,450 people with a population growth forecast of 1.7% per annum and an average household income 57% above the Australian average.
“Those are the sort of figures that will drive patronage and income growth in a market which is underpinned by one of the fastest growing economies in Australia,” Wizel said.
Dowers said the sale of the centre would benefit from traditional retail investor sentiment based on significant non-discretionary spend tenancy mixes and long term leases to blue chip tenants.
“Long-term leases, a weighting towards non-discretionary spend tenants, and relative income security during downturns, have always been regarded as attractive components of a defensive investment.”
