Large Format Retail Centre in Warners Bay Sold for $19.4M Through Burgess Rawson from CBRE

A prominent large format retail centre in Newcastle’s western corridor has changed hands, with the Bayside Centre at 10–16 Medcalf Street, Warners Bay transacting for $19.386 million, through Burgess Rawson from CBRE.

The transaction reflected a yield of 5.99%, underscoring continued investor demand for strategically positioned large format retail assets.

Marketed nationally through Burgess Rawson’s Select campaign by agents Yosh Mendis and Darren Beehag, the property drew strong interest, with 186 enquiries received throughout the expression of interest campaign from investors across the country.

“This sale highlights the strength of demand for well-located, securely leased retail investments in high-growth regional hubs,” said Mr Mendis.

“Warners Bay continues to attract both national tenants and institutional capital due to its strategic positioning within the Newcastle region.”

The 12,674 sqm site features a diverse tenant mix anchored by a newly constructed Hungry Jack’s with a dual-lane drive-thru. Other tenants include National Tiles, the Salvation Army, Anytime Fitness, Choices Flooring and Koorong. Leases extend up to 10 years with options, offering long-term income security.

Located on a high-exposure corner roundabout with 245 metres of combined frontage to King Street and Medcalf Street, the property benefits from excellent visibility and close proximity to major national retailers including McDonald’s, KFC, Officeworks, and The Good Guys.

Owned long term by the Gibbens Group, the Bayside Centre comprises a modern, purpose-built retail facility with a total building area of approximately 3,423 square metres.

The centre’s layout allows exceptional exposure for each tenancy and latest specification designed fit outs to suit both retail showroom and quick service fast food operations.

Mr Mendis said the sale highlights the growing appeal of Newcastle’s fringe locations, particularly as investors continue to seek assets with strong performance fundamentals outside capital cities.