Tamworth neighbourhood centre achieves 5.50% yield, ranking among Australia’s sharpest non-metro sales of 2025
Colliers is proud to announce the successful off-market sale of Southgate Shopping Centre acting for IFM Investors. The Coles-anchored neighbourhood shopping centre, located in South Tamworth, NSW was acquired by a private investor for $33.4 million, achieving a core cap rate of 5.50% and ranking as the fourth sharpest non-metro Neighbourhood Centre transaction nationally in 2025.
Strategically positioned on an 8,737 sqm site with 4,851 sqm of GLA, Southgate Shopping Centre is anchored by a strong-performing Coles and complemented by essential services including pharmacy, liquor and Australia Post. The centre benefits from robust population growth and increasing retail demand in one of inland NSW’s fastest-growing regional cities, reinforcing its role as a key daily-needs destination.
“This result underscores the strength of private and institutional investor appetite for daily-needs retail in catchments featuring strong demographics. Coles Southgate Shopping Centres performance and positioning made it a highly sought-after asset and achieving a benchmark yield off-market speaks to the scarcity of quality neighbourhood centres,” said James Wilson, Head of Retail Middle Markets, Australia.
The transaction was completed off-market, highlighting the depth of investor demand for defensive retail assets underpinned by national supermarket covenants. Neighbourhood centres remain one of Australia’s most resilient retail formats, supported by near-full occupancy, steady rental growth and strong household spending.
According to Colliers’ Q3 2025 Retail Snapshot, year-to-date retail Page 1 News Release transaction volumes have surged to $7.61 billion up 45% on the same period last year, reflecting heightened buyer competition and limited new supply.
“Supermarket-anchored centres continue to outperform nationally, driven by resilient tenant performance and defensive income profiles. With migration and regional growth accelerating, we expect sustained demand for assets like Southgate that offer long-term income security and strong demographic fundamentals,” added Ben Wilkinson, Manager, NSW | Retail Middle Markets.
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