A neighbourhood shopping centre in the NSW Hunter Region has sold for $33 million in a deal on behalf of Coles Group Property Developments.
Huntlee Shopping Centre in North Rothbury was sold through the Colliers team of James Wilson and Ben Wilkinson, in conjunction with James Douglas of CBRE. Huntlee Shopping Centre is a recently constructed 4,624 square metre neighbourhood shopping centre anchored by a full-line Coles and Liquorland store supported by a non-discretionary tenant profile accounting for 82% of total gross rental income.
Wilson said: “Huntlee Shopping Centre was secured by a sophisticated Sydney-based private investor in a highly competitive Expressions of Interest campaign. The depth of market is highlighted by circa $150 million in value of unsatisfied private capital still looking to be placed into the resilient neighbourhood shopping centre sector.”
Douglas added: “The performance of Coles and opportunity for income growth through the lease term were key drivers to the pricing outcome. Investing in the rapidly growing Hunter Valley region was also an attractive opportunity for potential investors.”
The centre is located within the Hunter Valley wine region, 48km from Newcastle and 180km from Sydney. Occupying a prominent 2.3-hectare site within the new Huntlee master planned community, the centre is expected to benefit from over $1.5 billion in government and private investment planned over the next 20 years.
The Coles Supermarket is secured on a new 10-year net lease, with options until 2073. The centre is 100% leased with a total WALE of 8.4 years by GLA and features a convenient on-grade car park with approximately 230 spaces.