This article is from the Australian Property Journal archive
EXPERIENCED Queensland based property syndicator Natgen has reached across the country to acquire Collie Central Shopping Centre, in south-west Western Australia, for $10 million.
Collie Central traded on an initial yield of 7.98%.
Located 213 kilometres south of Perth, the centre is Collie’s only enclosed-mall neighbourhood retail offering and features 4,498 sqm of gross lettable area on an expansive 1.16-hectare landholding.
Collie Central is anchored by a full-line Woolworths supermarket which has been trading for over 20 years. Its seven specialty tenants include national retailers Liquorland, OPSM, Terry White Pharmacy, and the state government.
The centre is positioned in the town centre close to Collie Central Park, Collie Senior High School and Collie South Regional TAFE. It is the only shopping centre for over 45 kilometres , leading to repeat visitation from local residents, the surrounding farming community, and tourists. The Centre’s convenience is supported by 140 on-site car bays as well as 30 adjacent roadside bays.
JLL’s Sean Flynn and Nigel Freshwater in conjunction with Jim Tsagalis of Lease Equity managed the sale of vendor Innprop Developments – also Queensland based.
“The relatively affordable price point and attractive initial yield proposition together with Collie Central’s longstanding and stable tenant mix anchored by a strong performing Woolworths supermarket were all factors which appealed to the buyer audience,” Flynn said.
Sale and settlement follows an expressions of interest campaign that closed late in November and received over 110 enquiries and “more than a handful” of bids between both agents.
“Opportunities to acquire a key neighbourhood retail asset anchored by one of the two majors rarely come to market. This scarcity factor coupled with the inevitable strong interest for convenience retail investments generally combined to generate a highly competitive process,” Freshwater said.
This week, in Western Australia’s sub-regional shopping centre segment of the retail market, real estate funds manager Centuria Capital Group acquired the Coles and Aldi-anchored Halls Head Central from ISPT and Vicinity Centres in a $70 million counter-cyclical play.
The fully-leased 19,373 sqm centre, which has a Kmart discount department store, two mini-majors, 50 speciality shops and two freestanding pad sites, sold at a 40% discount to replacement cost.
