A shopping centre in Pottsville on the far north coast of Northern New South Wales has sold under the hammer for $10.2 million, reflecting a yield of 4.58%.
The 908 sqm Pottsville Central property comprised a single-level shopping centre with a supermarket and four shops, including an Australia Post, on a 1,962 sqm site.
The asset had a 15-year lease to IGA until 2029 and occupied a prime position within the Pottsville CBD on the popular Tweed Coast.
Situated between Byron Bay and Coolangatta, the growing coastal region’s population has been bolstered by city-dwellers and seachangers seeking a new lifestyle in the wake of COVID and flexible hybrid working styles.
Geoff Sinclair, Michael Collins of Cushman Wakefield and Savills’ retail specialists Jon Tyson and Michael Harcourt brokered the deal.
The property attracted strong interest from a range of private investors with eight registered bidders hotly contesting the asset and pushing the sale price above expectations.
Sinclair said bidding for Pottsville Central was extremely spirited with two qualified, savvy buyers going head-to-head vying for the property.
“We are seeing enormous ongoing demand and capital available for convenience retail that meets consumers daily needs, while supply remains tight,” added Savills’ Tyson.
The deal comes after fund manager Argus Property Partners sold the Metro Market shopping centre in Biggera Waters on the Gold Coast for about $39.4 million last week.
Recent retail transactions include an EG fund buying a half stake in the Grand Plaza shopping centre in Brisbane from Invesco at an acquisition core capitalisation rate of close to 5.25% last week, while IJ Capital sold the Benowa Gardens shopping centre on the Gold Coast for $60.5 million, reflecting a passing yield of 4.99%.
Earlier this month, Woolworths Group sold the Sapphire Marketplace shopping centre in Bega, NSW to a private investor for $54.05 million, representing a 6.5% capitalisation rate.
