Sale smashes reserve by 75%, reflecting investor appetite for scarce essential-service retail assets
Colliers has successfully sold Pitt Town Shopping Village at 29 Eldon Street, Pitt Town on behalf of private investor Ironrace Pty Ltd for $5,231,000 at auction, achieving approximately a 3.88% net yield and exceeding the reserve by almost 75%.
Colliers’ Harry Bui, Swami Vishwanathan and Andrew Bui led the campaign. The centre was offered for the first time in more than 42 years, attracting strong interest from private investors, family offices, offshore investors and local community stakeholders.
“We received over 200 enquiries from qualified investors and attracted 18 active bidders at auction, underscoring strong appetite and confidence in essential-service retail. This result highlights the sustained shift among investors toward assets that deliver certainty and resilience, particularly neighbourhood centres anchored by supermarkets in growing metropolitan corridors,” said Harry Bui, Director in Charge of Sydney West office.
The property features eight shops anchored by a branded IGA supermarket on a 10-year lease and Pitt Town Bottle Shop, strategically positioned within Sydney’s North-West Growth Corridor. Set on a 2,192 sqm freehold corner site with surplus land for future development, Pitt Town Shopping Village offers long-term upside supported by strong trading performance, minimal local competition and favourable E1 Local Centre zoning.
“As investors increasingly prioritise income security and defensive strategies, convenience retail anchored by non-discretionary spending tenants will remain a cornerstone of portfolio diversification. These assets not only deliver reliable returns but also align with evolving consumer behaviours, ensuring long-term relevance,” added Andew Bui, Manager of Asia Markets.
Swami Vishwanathan, Manager of Asia markets also added “Pitt Town is a tightly held suburb with a rising demographic profile, an 88% owner-occupier rate and 27% population growth between 2016 and 2022. Significant government infrastructure investment continues to drive demand for retail assets in the Hawkesbury region.”
The auction result demonstrates the resilience of neighbourhood retail centres across metropolitan NSW, particularly those underpinned by essential-service operators and stable long-term leasing structures.
Related Articles
