Coles Amaroo Village, a neighbourhood shopping centre located in the fast-growing northern suburbs of Canberra, is set to be offered for sale next week in a campaign managed by Savills Australia, in conjunction with Stonebridge.
An opportunity within the tightly held ACT retail market will become available next week with the announcement that Coles Group Property Development is putting Coles Amaroo Village on the market.
Steven Lerche and Nic Purdue of Savills Australia, and Philip Gartland and William Blanch of Stonebridge have been exclusively appointed by the group to sell the (approximately ) 4,600 sqm centre, which features a convenient, non-discretionary tenancy mix.
About 80% of the gross floor area is secured to Coles and Liquorland on a new long-term lease, with the remainder comprising eight specialty shops including a pharmacy, real estate agency, barber, Indian Grocer and various food offerings.
At a glance:
According to independent research firm MacroPlan Dimasi, the Centre serves a highly affluent trade area, with per capita income levels 55% in excess of the Australian average.
The trade area’s population is forecast to grow rapidly by 3.8% p.a. to 2031, well in excess of the Australian average of 1.4% p.a.
Situated at 815 Horse Park Drive, Coles Amaroo Village produces an estimated Net Income of $1,850,000 p.a.
The ACT continues to be a very secure retail market to invest in due to the significantly high barriers to entry for competing retail offerings.
Source: Savills
Savills Australia National Director of Retail Investments, Steven Lerche said investors placed a premium on neighbourhood centres offering a net lease structure such as that offered at Coles Amaroo Village.
"Neighbourhood centres along the East Coast, particularly in the major capital cities, regularly command yields of sub 6%, as seen in the sale of Cranebrook Village at 5.30% in Western Sydney, Woolworths Caloundra at 5.67% on the Sunshine Coast and Coburg North Village in Melbourne rumoured to be sub 5%," he said
"These neighbourhood shopping centre yields are only outdone by freestanding supermarket investments that have traded in the high 4% to low 5% range, due to their security of income and ease of management and prime core regional shopping centres that have benchmark yields of 4 to 4.5%."
"Amaroo Village is an outstanding convenience and non-discretionary retail hub, ideally located within the town centre."
The international expressions of interest campaign is being run by Savills and Stonebridge and closes on 19th June 2019.
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