Dexus has completed the sale of its Deepwater Plaza sub-regional shopping centre in Woy Woy to a private investor for $111 million, as interest in convenience-focused malls grows. 

The off-market deal was first announced last December and reflected a core capitalisation rate of 6.50%.   

Deepwater Plaza is a dominant, convenience focused sub-regional shopping complex located 84km north of Sydney.  

The 17,417sqm Woy Woy centre was anchored by a strong performing Coles supermarket and Kmart discount department store with combined MAT of $84.1 million, and provided an major tenant WALE of 5.6 years (by GLA). 

The trading major tenant profile was supported by a variety of national and chain retailers, which represent approximately 90% of the centre’s tenanted GLA and 85% of the gross rental income. 

The centre is positioned on a strategic 42,910sqm freehold site adjoining the Woy Woy railway station. 

Simon Rooney, CBRE’s Head of Retail Capital Markets – Pacific, negotiated the off-market sale of the Central Coast property. 

“This transaction demonstrates the shift in investor focus and renewed demand for sub-regional centres, specifically for assets with a clear focus on non-discretionary spending and genuine value-add opportunities,” Rooney said, noting that over $700 million had been transacted in this sub-sector year to date. 

“Investors were attracted by Deepwater Plaza’s robust major tenant and overall sales performance, coupled with the centre’s strong specialty productivity of $10,007/sqm and sustainable occupancy cost of 11.5%.”