Stonebridge Property Group, in conjunction with Knight Frank, has brokered the sale of Wyee Village East & West to a first-time retail investor on a passing yield of 5.72% — the latest in a run of private capital chasing convenience-based retail.
The centre at 121 & 131-135 Wyee Road comprises 2,676 sqm of gross lettable area across two E1 Local Centre-zoned island sites totalling 7,573 sqm, supported by 77 at-grade car spaces. It is anchored by a brand-new IGA on a lease running to 2032 with a further seven-year option to 2039, alongside a defensive line-up of essential-service tenants including Chemsave Pharmacy, a medical centre, dentist, psychologist, Australia Post, Domino’s and Ice Box Liquor.
The asset traded with a 4.2-year WALE by area, 97% occupancy and an average specialty gross rent of $583/sqm.
Positioned midway between Sydney and Newcastle and a short walk from Wyee train station, the centre is the only supermarket-anchored offering in the suburb currently. The trade area is forecast to grow at 3.3% a year to 2031, supported by a residential pipeline of more than 900 new homes – including 730 at the neighbouring Radcliffe estate – reinforcing the long-term spend base underpinning the centre’s income.
The sale occurs as IGA-anchored retail centres emerge as one of the most contested asset classes. Private investor demand has surged with five IGA-anchored assets being secured by private capital through Stonebridge in the past six months alone.
“Our on-market campaign generated highly competitive bidding, resulting in 7 formal offers. With approximately $90 million in unplaced capital actively seeking similar investment opportunities, now is an opportune time for owners to consider bringing assets to market,” said Alex James-Elliott, Director, Stonebridge.
” Defensive income, non-discretionary tenancy mixes and rising replacement costs continue to draw capital toward well-located convenience centres. The annual rental growth profile is proving extremely attractive to private capital right now,” said Philip Gartland, National Partner, Stonebridge.
The transaction was negotiated by Alex James-Elliott and Philip Gartland of Stonebridge, in conjunction with Knight Frank.
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