Quick flip sees 30% price jump for NSW retail hub
A Perth-based syndicate has pocketed an almost 30% price premium after selling a large format retail centre on the New South Wales Central Coast, having bought the asset only 18 months ago.
The syndicate, Properties and Pathways, paid $7.54 million for Tuggerah Central in June 2016. But it’s now collected $10.8 million for the property after reinvigorating its offering, and then capitalising on demand in the regional retail market.
Anchored by an Officeworks outlet and furniture store Nick Scali, the 4118sqm centre had previously been “neglected”, according to Properties and Pathways managing director Cal Doggett.
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Doggett says the stars aligned perfectly in quick time, paving the way for the short turnaround and $3.26 million price boost.
Tuggerah Central is anchored by a Nick Scali furniture store.
“We identified a small window of opportunity to activate redundant GLA (gross lettable area) in a neglected asset and engaged a proactive plan to turn the asset around,” he says.
“We had a strong vision for the centre and firmly took the reins to drive this outcome with a reinvigorated signage/façade upgrade, which enabled us to attract and secure the right tenant.”
“The turnaround of the asset was in line with our core strategy and delivered our investors an exceptional return.”
The property also treated CBRE Retail Investments agents Nick Willis and Justin Dowers kindly, with the pair negotiating its sale both in 2016 and also in the latest deal.
Tuggerah Central (bottom) is positioned opposite a Bunnings warehouse and other retail outlets.
Dowers the sale highlights strengthening investor interest in the large format retail sector.
“Our recent campaigns have highlighted a real shift of investors who are now actively pursuing large format retail assets. Proactive managers such as Sentinel and Property and Pathways have been able to position these centres to now appeal to a risk-averse investors that see long-term value in the sector,” he says.
The $10.8 million sale price of Tuggerah Central reflected a yield of 6.5%.
