Coles divesting Canberra shopping centre

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COLES has listed the convenience-oriented Amaroo Village neighbourhood shopping centre in Canberra’s northern suburbs for sale, marking a rare chance to secure a major retail asset in the nation’s capital.

Steven Lerche and Nic Purdue of Savills and Philip Gartland and William Blanch of Stonebridge are marketing the 4,600 sqm centre, of which 80% of the gross floor area is leased to Coles and Liquorland on a brand-new, long-term lease.

The Coles is located at 815 Horse Park Drive and is the catchment’s only full-line supermarket. Eight specialty shops within the centre include a pharmacy, real estate agency, barber, Indian Grocer and various food offerings, for a total income of centre around $1.85 million per annum net.

Only three retail properties have changed hands with price tags between $15 million and $40 over the past five years.

“The ACT continues to be a very secure retail market to invest in due to the significantly high barriers to entry for competing retail offerings,” Gartland said.

Data from research firm MacroPlan Dimasi shows the centre’s trade area has per capita income levels 55% in excess of the Australian average, and a population that is forecast to grow by 3.8% per annum to 2031, in excess of the national average of 1.4% per annum.

Lerche said Amaroo Village is an outstanding convenience and non-discretionary retail hub, ideally located within the town centre.

“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 late 2019,”

He said neighbourhood centres along the east coast, particularly in the major capital cities, regularly command yields of sub-6%, as seen as in the sales of Cranebrook Village in western Sydney at 5.30%, Woolworths Caloundra on the Sunshine Coast at 5.67% and Coburg North Village in Melbourne, reported to have sold for around $48 million, at a yield heading towards 4.7%.

Gartland said that with a limited supply of retail investment properties in the ACT, Amaroo Village is expected to receive a great deal of interest from a variety of local and international groups.

“Well located and quality investment stock continues to remain ‘hot property’ for retail investors as demand for secure, non-discretionary shopping centres remains strong and we do not foresee this trend slowing down anytime soon with interest rates looking to remain lower for longer.”

Expressions of interest close 19th June.

Australian Property Journal