Big yield for NSW Big W centre
Demand for Australian retail assets continues unabated, with a Sydney investor paying $13.2 million to secure a Big W-anchored shopping centre at Cessnock in regional New South Wales.
The sale of the Cessnock centre came on a solid passing yield of 7.6%, with only a short weighted average lease expiry due to Big W’s lease having only 4.5 years remaining.
The Darwin St facility is just over 10 years old and features 8009sqm of gross lettable area on a 19,290sqm site, with 291 car parking spaces.
The centre generates a net annual income of just over $1 million and is 89% leased, with tenants also including Repco and Supercheap Auto.
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Savills’ Steven Lerche and Andrew Palmer sold the property on behalf of a Melbourne private investor, with Lerche saying retail property is still at the top of many investors’ shopping lists.
“Cessnock offered a superb opportunity for an investor to acquire a near new, well-presented and well-established regional property that requires limited management, with a solid tenancy profile, a captive market and great potential for capital growth,’’ Lerche says.
“Demand for retail property investments remains at an historical high and so it was no surprise that we were able to place the property … especially given the tight yields for convenience anchored centres.”
