This article is from the Australian Property Journal archive
A PRIVATE investor has paid $18.05 million to secure an Upper Hunter neighbourhood shopping centre anchored by a full-line Coles supermarket paying turnover rent.
Scone Village offers 4,111 sqm of gross lettable across a 8,879 sqm of land, offering low site coverage and scope for expansion. As well as Coles, tenants include Icebox Liquor, Kaisercraft, Regional Australia Bank and six additional specialties.
Colliers’ James Wilson and Ben Wilkinson sold the centre on a passing yield of 6.36%. They said the campaign attracted 215 enquiries from existing and first-time investors, and including private investors, syndicators, unlisted funds and offshore capital.
“The ventre was acquired by a first time shopping centre investor, reflective of a key theme across 2024 campaigns. Colliers Retail Middle Markets Team are engaging a growing number of emerging mandates bidding with increased confidence based on where Australia is placed in the debt cycle,” Wilson said.
The Centre has been acquired by a local syndicate in 2015, which undertook a number of improvements including upgrades to the convenient on-grade car park and tenancy mix.
These improvements, alongside council upgrades to Kelly Street, the main thoroughfare through Scone, assisted Coles to become the largest and most dominant supermarket within its main trade area, the agents said.
Located 25 kilometres north of Muswellbrook and 205 kilometres from the Sydney CBD, 8,400 cars pass Scone on a daily basis via the New England Highway, with main trade area retail spending projected to increase to $406.1 million by 2041.
To the south, NSW-based developer Panthera Group is having a second shot at selling its Raymond Terrace neighbourhood shopping centre, Terrace Central, hoping to capitalise on the rebound in retail investment.
This is the second time Panthera has tried to sell the 6,678 sqm centre, which is on a 17,453 sqm site, having put it on the market in 2023 with expectations of over $50 million.
Panthera had acquired the centre from Vicinity in 2017 for $33.5 million.
CBRE has the listing.
