Steven Lerche and Nic Purdue of Savills Australia and Philip Gartland and William Blanch of Stonebridge have been appointed by Coles Group Property Development to sell the 4600 square metre Amaroo centre, which has a non-discretionary tenancy mix, with 80 per cent of the site anchored by Coles and Liquorland on a new long-term lease.
Mr Lerche, Savills Australia’s national director of retail investments, said the strength and appeal of the town centre will be enhanced with the only Aldi in the area, located opposite the site, under construction and due for completion in late 2019.
“Neighbourhood centres along the east coast, particularly in the major capital cities, regularly command yields of sub 6 per cent, as seen in the sale of Cranebrook Village at 5.3 per cent in western Sydney, Woolworths Caloundra at 5.67 per cent on the Sunshine Coast and Coburg North Village in Melbourne.”
There have also been Thornleigh Marketplace, Chester Square Shopping Centre and Windsor Marketplace.
Stonebridge director Mr Gartland said Amaroo sits within a highly affluent and growing catchment, with very high barriers to entry for competition, reflected by Coles’ very strong sales growth since opening.
“With the limited supply of retail investment properties in the ACT, we anticipate Amaroo Village will receive a great deal of interest from a variety of local and international groups,” Mr Gartland said.
Colliers International agents James Wilson and Alex James-Elliott are selling Willowdale Shopping Centre, also owned by the Coles Group Property Development Ltd.
Mr Wilson said the neighbourhood centre is 100 per cent leased, anchored by a full-line Coles supermarket and Liquorland, and has a weighted average lease expiry of more than 10 years. Close to 80 per cent of the income is secured by national and chain retailers, with the majority of specialty tenants featuring attractive fixed 4 per cent annual rental review mechanisms.
“The centre’s income growth potential is set to benefit from the $5.35 billion Western Sydney Airport project which has recently commenced construction and forms a key part of the Western Sydney Employment Area. The airport is being supported by $3.3 billion of roads investment and $6 billion of rail investment from the NSW and Commonwealth governments,” Mr Wilson said.