Neighbourhood Centre with supersized Coles
Settlement June 2020
A Newcastle Coles anchored neighbourhood centre will soon to be acquired for syndicated ownership.
The centre comprises a lettable Area of 7,226 sqm and in addition to the super-sized supermarket, 23 specialty tenancies with 231 car spaces under the centre with basement parking. The property was purchased for $44.32M which showed a commencing property yield of 7.6%.
I found the centre impressive not only in terms of the customers in attendance at the time, but also the quality of retailing on offer, including wholefoods, surf shops, cooking supplies and combined cooking school and other non-discretionary retailers such as a supersized Coles and a pharmacy.
The centre also adjoins a well to-do local strip area with up market boutique stores, beauticians and cafes. And of course the beautiful Newcastle beaches are only a stones throw bringing with it a well heeled neighbourhood demographic. To me, the feeling of the area was more like Neutral Bay or Cremorne. The centre has a 99% occupancy with Coles providing approximately 50% of the center’s income with the lease to June 2027 plus 2 x 10 year options
I inspected the property on May 26 2020, just after the more onerous Covid 19 restrictions had been lifted. Pleased to report with a couple of exceptions, the trading appearance looks similar to the pre-Covid 19 period. And despite this lockdown, the Coles Supermarket traded in turbo charge mode over the months of March and April period. I would expect that in these post covid times with working people preferring to zoom rather than commute , neighbourhood centres will be big beneficiaries of the increased custom.
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All areas and figures are approximate only. All reasonable steps have been taken to ensure the accuracy of this information and this does not constitute any representation by us as agent and should be considered a guide only. This investment is restricted to wholesale investors only.