Raptis buys Central Coast shopping centre

Raptis unsuccessfully tried to acquire the multi-level car park next to Deepwater Plaza.

The Raptis Group has snapped up the Deepwater Plaza, in Woy Woy, from Dexus.

The $111 million off-market deal, speculated late last year, reflects a c6.25 per cent yield.

Dexus paid Jerry Schwartz $98.5 million for Deepwater Plaza in 2014.

Dexus paid $98.5m in 2014; that seller was Jerry Schwartz.

The Laundy family purchased Woy Woy’s Bay View hotel in 2021.

The Raptis Group, led by Jim Raptis, tried to add to its holding before settling with Dexus – in recent months seeking to buy a neighbouring car park from the Central Coast council for a speculated $3.3m.

However following an outcry from locals, the council earlier this month said it would hold onto that property.

Woy Woy, on the Central Coast, is about a 75 minute drive north of Sydney.

Elsewhere in the area, in late 2021, the Laundy family paid operators Gary and Kerry Narvo $38m for the Bay View hotel, which contains guest accommodation, while Harvest Hotels paid $32m for the Woy Woy Hotel.

Deepwater Plaza

On 4.29 hectares abutting Woy Woy train station, with frontage to Charlton, George and Railway streets, Deepwater Plaza was marketed for its development upside, with the airspace able to accommodate residential.

As is, the asset contains 17,417 square metres of lettable area anchored to Coles and Kmart.

The moving annual turnover is $84.1m.

The Weighted Average Lease Expiry, by area, is 5.6 years.

“The strong trading major tenant profile is well supported by a variety of national and chain retailers, which represent approximately 90pc of the centre’s tenanted gross lettable area and the 85pc of the gross rental income,” CBRE’s Simon Rooney, who represented Dexus, said (story continues below).

Dexus recently sold Shepparton Marketplace for $88.1 million.

Dexus sells another shopping centre

Beenleigh Marketplace sold to Mintus for $85 million.

Deepwater Plaza was one of three shopping centres Dexus sold late last year from its Wholesale Property Fund.

The other two also traded at yields between six and seven per cent including Shepparton Marketplace, which sold to a partnership comprising Sim Liam Group and the listed Metro Holdings, both from Singapore, for $88.1m – a c6.3pc return – while Beenleigh Marketplace in south east Brisbane , on 6.08 hectares also with an office, collected $85m – a c6.75pc yield – from Mintus.

Mr Rooney said over $700m of sub regional shopping centres have sold nationally this calendar year.

“This transaction demonstrates the shift in investor focus and renewed demand for sub regional centres, specifically for assets with a clear focus on non-discretionary spending and genuine value add opportunities,” he added.

“Investors were attracted by Deepwater Plaza’s robust major tenant and overall sales performance, coupled with the centre’s strong specialty productivity of $10,007 per sqm and sustainable occupancy cost of 11.5pc,” according to the executive.

The deal comes three weeks since the Dexus managed AMP Shopping Centre Fund sold a half stake in Stockland Townsville to Haben for c$125m and a 50pc interest in Perth’s Rockingham Centre south of Perth, to IP Generation, for $180m – a high 8.5pc yield.

IP Generation also recently acquired Craigieburn Central, north of Melbourne, for $300m.

That seller was the a 50:50 partnership comprising Lend Lease and its managed Australian Prime Property Fund Retail.

In February, meanwhile, Melbourne fund manager Fawkner Properties paid Stockland $139m for the Gladstone Shopping Centre, also known as Stockland Gladstone, between Bundaberg and Rockhampton.

That price reflected a 7.4pc return and a small drop on the ($143.6m) June, 2022, valuation.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.