TAMIM sells Newcastle neighbourhood shopping centre for $27 million

TAMIM Funds Management has sold neighbourhood mall Elermore Vale Shopping Centre in Newcastle to a Sydney private investor for $27 million.

The off-market transaction was negotiated by JLL’s Sebastian Fahey, Dylan McEvoy and Nick Willis together with Stonebridge’s Phillip Gartland and Alexander James-Elliott, achieving a 4.9% passing yield at a rate of $6,645 per sqm GLA.

Elermore Vale Shopping Centre is secured by Ritchies IGA, with the balance of 15 specialties with 100% of income weighted toward non-discretionary uses.

The 4,063 sqm centre is located on a major 2.38-hectare landholding with 235 secure at-grade bays. The site offers favourable development controls and upside potential.

JLL’s Mr Fahey said, “The asset attracted considerable interest due to the value-add opportunities, given its high growth metropolitan location offering plus significant future development upside. Only 10km from the Newcastle CBD, the sale of Elermore Vale highlights the clear demand for retail assets in attractive metropolitan locations with significant growth prospects.”

“In the current changing economic environment, the ability to secure a neighbourhood shopping centre with tangible competitive advantages and genuine value add opportunities, is highly attractive in the current market.” Mr Fahey added.

Stonebridge’s Mr James-Elliott said, “The centre’s protection against future competition as the only mixed-use land holding within Elermore Vale and immediate access to approximately 31,637 residents is a major drawcard.”

“Investors are recognising that Newcastle is a strong location to place capital, and its renewal and subsequent gentrification through private and public investment is significant and will continue to attract investors to this market.” said Mr James-Elliott.

TAMIM’s co-founder Jeff Taitz said “Elermore Vale Shopping Centre was a foundation asset for our group when it was acquired in 2017 for $17.5m. The asset suited our managerial capabilities and performed to expectations during the COVID-19 crisis due to our emphasis on retaining and securing non-discretionary tenancy composition. I believe our investors will be very satisfied with the return it has provided.”