Major Gosford asset achieves seven bids in competitive campaign, highlighting continued strength in non-metro located neighbourhood investments
Imperial Centre Gosford has sold for $62.75 million following a highly competitive campaign that attracted seven formal bids, marking the largest non-metro New South Wales neighbourhood centre transaction since 2021.
Imperial Centre Gosford, sold by JLL’s Nick Willis, Sam Hatcher, David Mahood and Sebastian Fahey in conjunction with Colliers’ James Wilson and Ben Wilkinson, was acquired by a private Sydney investor through a highly contested on-market transaction on behalf of IP Generation. The three-level neighbourhood shopping centre spans 16,769 sqm and is strategically positioned just 200 metres from Gosford train station on a strategic 1.55-hectare CBD landholding.
Nick Willis, Executive Director at JLL Australia & New Zealand commented, “The seven formal bids received for the Imperial Centre demonstrates the growing competition for retail assets in today’s market. With limited on-market supply and growing investor confidence, we’re seeing unprecedented demand for neighbourhood centres that offer scale, strong tenant covenants and strategic landholdings with development potential.”
The centre is anchored by Woolworths and BWS and supported by 53 specialty tenants, six kiosks, 14 office suites, three mini majors and an ATM, providing diversified income streams. Imperial Centre benefits from extensive development planning, with concept plans by DKO Architects for a major mixed-use project featuring 478 residential apartments.
James Wilson, Head of Retail Middle Markets at Colliers added, “Imperial Centre’s campaign engaged over 200 enquiries, highlighting the incredible buyer depth from domestic and offshore capital for strategically located neighbourhood shopping centres. Purchasers were particularly attracted to maximising the centre’s mixed-use potential given it occupied a strategic 1.54ha site opposite a train station within Gosford’s rapidly evolving CBD”.
Ben Wilkinson, Manager of Retail Middle Markets NSW at Colliers commented, “The competitive campaign generated over $300 million in unsatisfied capital from underbidders actively seeking exposure to NSW neighbourhood centres. Investors continue to be drawn to the proven resilience of non-discretionary, convenience-based retail. These centres are recognised as recession-resistant, delivering long-term security and consistent performance.’”
Since 2019, non-metro NSW neighbourhood centres have experienced significant yield compression, with private investors dominating acquisition activity as institutional capital focuses on larger metropolitan assets. Analysis of recent transactions reveals that nearly 80% of non-metro neighbourhood centre purchasers since 2023 have been private investors, attracted by the sector’s defensive characteristics and limited new supply pipeline.
David Mahood, Senior Executive at JLL Retail Investments NSW commented, “The sale of the Imperial Centre marks the 9th neighbourhood transaction in New South Wales this year. While transaction volumes remain above the 5-year average, the number of neighbourhood transactions in New South Wales is nearly half of last year’s.
“As demand for neighbourhood centres continues to strengthen, opportunities to acquire these highly sought-after investments remain severely limited, with only a few on-market opportunities available. This has resulted in a significant increase in our participation rates for on-market sales, with our average number of bids received per campaign rising from four to seven. This provides owners with a brief window to capitalise on the current supply and demand imbalance, as we expect any asset offered to the market will receive unprecedented interest,” concluded Mr. Mahood
The Imperial Centre transaction reinforces the ongoing strength of the non-metro neighbourhood centre sector, with quality assets expected to remain in high demand as investors seek defensive retail investments with growth potential.
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