Woolworths lists NSW South Coast asset
Woolworths has listed another near-new mall it anchors, this time on the NSW South Coast.
The Bomaderry Shopping Centre, on 1.94 hectares at 320 Princes Highway, should sell for more than $45 million, according to sources, which would reflect a sub 4.5 per cent net yield.
Almost three quarters of the gross income is derived from the supermarket, which the parent committed to a 10 years lease, before offering the asset for sale.
A medical centre, pharmacy, gym and four specialty stores occupy the balance of the 5491 square metre centre, which also includes 296 car parks.
The listing comes seven months since the same vendor banked $36m, reflecting a fully let four pc return, for a similar neighbourhood shopping centre at Bulli, about 75km north of Bomaderry (though in that case, the supermarket contributed to 92pc of the income).
Not long earlier Woolworths paid ISPT $49m for the Kiama Village – about half way between Bulli and Bomaderry – with plans to undertake a major refurbishment.
Bomaderry Shopping Centre
Woolworths is represented by Stonebridge’s Justin Dowers, Philip Gartland and Kevin Tong, who said the two year old asset offers significant depreciation benefits (story continues below).
The complex is a high performer within the vendor’s supermarket portfolio too, Mr Dowers added, achieving an “outstanding” first year trade, benefited from strong population growth.
“The centre draws visitation from over an hour south, due to its gateway position and convenience focus,” he added, the agent pointing to Location IQ research showing 21pc of visitors come from outside the main trade area.
“Located on…the main route along the South Coast, the centre sits at a key arterial junction just 3.5km north of Nowra,” according to the marketing agent.
“Income growth potential is very strong, with annual increases secured for specialties and an opportunity to achieve supermarket percentage rent,” he added.
The listing comes eight months since the same agents sold a new shopping centre on a similar sized block for Woolworths – Greenvale Lakes, in Melbourne’s north Roxburgh Park, for $27.7m, reflecting a 3.95pc yield.
Bomaderry is about 150km south of Sydney.
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