Charter Hall has sold the Katherine Central Shopping Centre, in the Northern Territory, for $28.9 million.
It was only four years ago Charter Hall paid $27.9 million for the asset – the only shopping centre in Katherine.
The purchaser, a Melbourne investor, is acquiring Katherine Central on a core cap rate of 7.43 per cent, the brokers said.
Anchored by a Woolworths supermarket, the 7159 square metre centre is also tenanted to, amongst other retailers, Amcal, Brumby’s BWS and Rockmans.
It abuts the Southgate Centre retail and commercial complex and Katherine Hotel.
RAAF Base Tindal is about 15 kilometres south-east of Katherine Central.
“The centre enjoys an excellent market share within an expansive 500 kilometre main trade area in the Northern Territory,” Mr. Parkinson, national head of Retail Investments, said.
“Aside from the Woolworths in Katherine, the closest full line supermarket is in Darwin, 316 kilometres away.”
Katherine is also a tourism stopover to nearby attractions Katherine Gorge and Nitmiluk National Park.
“As Katherine’s only shopping centre, the property plays a vital role in supplying residents in surrounding rural areas with crucial access to retail goods,” Mr Parkinson said.
‘The investment fundamentals of Katherine Central are testament to the significant interest the asset generated. With the Woolworths generating upper quartile turnover, the right amount of speciality shops and minimal competition, it’s no wonder the purchaser saw value in the asset.
Mr Silberman, director of Retail Investments, added that the total retail spending market generated by the overall trade area is estimated to be around $212 million”.
“This amount is expected to increase on average by 4.2 per cent per year, reaching around $346 million for the overall trade area, including $268 million in the primary sector and immediately surrounding Katherine.
“The sale is a significant economic win not only for Katherine, but for much of the Northern Territory,” the broker said, adding that “Katherine shows no signs of slowing down.”