Coffs Harbour Retail Centre sells for $12.8 million

Boambee Central Shopping Centre, near the NSW coastal town of Coffs Harbour, has been snapped up by Brisbane-based fund manager Exceed Capital for $12.8million.

The off-market deal was negotiated by Savills’ Peter Tyson on behalf of a private syndicate.

Boambee Central comprises a convenience-based neighbourhood shopping centre originally developed in 2002 and is anchored by a 2,680sqm Ritchie’s Supa IGA supermarket with three specialty shops and a total GLA of 3,041sqm. The fully leased centre was sold with a 1,917sqm parcel of adjoining vacant development land.

Peter Tyson advised “The centre provided an attractive, fully-leased investment opportunity anchored by a strongly performing supermarket and minimal specialty tenancies, with the benefit of spare land for future expansion”.

The market appetite for daily-needs centres has ramped up over recent years, leading to a tightening of yields for the asset class. The sale price reflected a passing yield of 5.5% including the spare land.

Tyson commented further “The combination of a high-performing supermarket on a lease under-pinned by ASX-listed Metcash Trading Limited, a stable income profile and potential for capital uplift with development were attractive metrics for investors.”

The sale follows two other transactions in regional New South Wales also brokered by Savills, including the freestanding Woolworths Supermarkets in Wagga and Narrabri with passing yields of 4.25% and 4.4% respectively.