Woolworths sells Mittagong Shopping Village for $9.7m off-market

Following an off-market campaign, the Mittagong centre traded for $800,000 less than a 2017 book value, and $200,000 lower than an assessment carried out late last year.

Woolworths’ SCA Property Group has banked $9.7 million from a small retail centre in the Southern Highland town of Mittagong, almost halfway between Sydney and Canberra.

Mittagong Shopping Village at 126-130 Main Street, but also with frontage to Old Hume Highway and Bowral Road, is trading to a private investor following an off-market campaign.

The price is a drop on the ($10.4m) independent valuation from 2017, when a 6.25 per cent capitalisation rate was assumed. It was assessed at $9.6m, on a seven per cent yield, late last year.

Developed 13 years ago, the 2235 square metre asset is anchored by Woolworths’ liquor retailer, Dan Murphy’s, which takes 71 per cent of the area.

Also with five spaces for speciality stores, and 48 car parks, it is 94 per cent occupied with a long c11-year weighted average lease expiry.

On a 4735 square metre site at the bottom end of the town’s commercial centre, the property is about a kilometre from a full-line Woolworths supermarket.

Mittagong is a popular tourist town five kilometres north of Bowral and three times that from Moss Vale.

It is a c120 kilometre drive south west of Sydney.

The vendor puts trade population in the area at 49,970, rising to 55,720 by 2026.

The households, Woolworths added, collect a (high) average income of just over $80,000.

PROPINVEST’s Sasha Makkapati introduced the buyer to SCA, which holds a c$3.2 billion portfolio with 91 assets including 85 convenience based shopping centres.

Further investments, like Mittagong Shopping Village, are held in unlisted SURF [SCA Unlisted Retail Funds] trusts.

Last week Woolworths with Time & Place announced a $30m outlay on an office in Melbourne’s Glen Iris, with plans to co-develop a multi-level complex with apartments above a supermarket.

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Marc Pallisco

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