Woolworths’ construction arm Fabcot has offloaded a modern shopping centre with residential development upside at Bulli, 12 kilometres north of Wollongong.
The $36 million deal with local builder Pasquale Lucchitti, director of Realta Group, reflects a fully let four per cent yield.
On a 1.46 hectare B2 – Local Centre zoned block, the asset contains 3956 square metres of area and 212 bay car park.
Woolworths, which has just signed a 10 year lease, contributes to 92pc of the income.
There are also four non-discretionary tenancies.
Bulli is an affluent suburb with a median house price of $1.55m – up from $1.12m a year ago – according to REA Group.
Earlier this month we reported Haben paid GPT over $400m for Wollongong Central.
Also at that time, Elanor Investors Group spent $136.25m on Warraong Plaza, about nine kms south of the town centre.
That vendor was Blackstone (story continues below).
Another Woollies sale
JLL’s Nick Willis and Sam Hatcher represented Fabcot, which completed the Bulli centre at 5-9 Molloy Road in 2015.
“The favourable mixed-use zoning has potential for over 250 residential units…allowing for long-term redevelopment, which underpins the investment case,” Mr Hatcher said upon listing the complex in April.
“The existing provision of supermarkets within the northern Illawarra catchment and the shortage of development sites suitable to accommodate full line supermarkets underpins the defensive nature of this strongly performing Woolworths supermarket,” he added.
“[The shopping centre] encapsulates three key investment fundamentals including high barriers to entry ensuring security trade, growth of income and strong underlying land value,” according to the executive.
Subscribe to our newsletter at the bottom of this page.