Woolworths-Anchored Neighbourhood Shopping Centre Changes Hands in $44.1 Million Sale

Panthera Group has divested its high performing Terrace Central shopping centre in the NSW Hunter Region for $44.1 million as transaction volumes in the retail sector steadily increase. 

Argus Property Partners acquired the centre, located at 30 Sturgeon Street Raymond Terrace, following a sale campaign coordinated by CBRE’s James Douglas, James Sherley and Savills’ Steve Lerche, with competitive bidding from institutional and syndicator capital as well as private investors. 

The purchaser was introduced and sale negotiated by CBRE’s James Douglas and James Sherley with the price reflecting a passing yield of 6.37%. 

Mr Douglas said, “Panthera had completed a number of strategic initiatives at the centre within their ownership, with further value-add opportunities on offer for Argus to drive asset performance and returns.” 

Raymond Terrace is a strong regional hub located 165km north of Sydney and 27km north of the Newcastle city centre. The centre’s Woolworths supermarket is secured on a long-term lease and is paying percentage rent. 

Woolworths and BWS recently completed an internal refurbishment in 2022 and have committed to new 10-year leases to 2032, with the supermarket’s sales in excess of its turnover threshold. 

The 6,978sqm centre occupies a land-rich, 17,453sqm freehold site, providing abundant car parking, high exposure, and favourable accessibility. 

CBRE’s James Sherley added, “Demand for NSW neighbourhood shopping centres remains robust, particularly for assets such as Terrace Central which offer strong growth prospects with population in the main trade area forecast to increase by 1.7% p.a. and above benchmark supermarket performance that provides compelling rental growth potential.” 

Forecast government and private investment within the immediate region is set to exceed $2.4 billion, including the $2.1 billion M1 Pacific Highway Extension, which is slated for completion in 2028, and the Newcastle Airport upgrade due to be completed in mid-2025. 

The centre has been positioned to benefit from this investment and from key greenfield residential developments in the main trade area, including the master-planned Kings Hill community. Situated 6km north of the centre, Kings Hill is expected to contain over 3,000 lots accommodating more than 10,000 residents.  

In total, the main trade area population is forecast to grow by 1.7% p.a. – more than double the NSW non-metropolitan average – and reach 37,130 people by 2046.