Brisbane-based fund manager Exceed Capital has bought the Boambee Central neighbourhood shopping centre near Coffs Harbour in New South Wales for $12.8 million.
Built in 2002, the convenience-based shopping centre offered 3,041 sqm of gross lettable area and a 1,917 sqm parcel of adjoining vacant development land.
The fully leased centre was anchored by a 2,680 sqm Ritchie’s Supa IGA supermarket and three specialty shops.
The property was sold by a private syndicate at a sale price reflecting a passing yield of 5.5%, including the spare land.
Savills’ Peter Tyson, who negotiated the off-market deal, said the centre provided an attractive, fully-leased investment opportunity anchored by a strongly performing supermarket and minimal specialty tenancies, with the benefit of spare land for future expansion.
“The combination of a high-performing supermarket on a lease under-pinned by ASX-listed Metcash Trading Limited, a stable income profile and potential for capital uplift with development were attractive metrics for investors,” Tyson said.
The deal follows other retail transactions in regional NSW such as Parkstone’s purchase of a Woolworths-anchored retail centre in Wagga Wagga as part of a larger deal worth more than $40 million last month.
In March, Woolworths sold the Sapphire Marketplace shopping centre in Bega for $54.05 million, while the Pottsville Central retail centre in Pottsville on the far north coast of NSW sold under the hammer for $10.2 million.
The Charter Hall’s Direct Industrial Fund No.4 bought a Bunnings store in Nowra on the south coast of the state for $65.3 million in February, as the Coles-anchored Market Plaza Chipping Norton property sold for $37.4 million in January.
Retail property investment volumes reached $2.7 billion across Australia during Q1 2022, down 13% compared to the same period last year, according to Real Capital Analytics.
However, retail investment was up 119% to $19.6 billion during the 12 months ending in Q1 2022, RCA said.