A high-performing retail centre in the NSW Hunter region has changed hands for $44.1 million as interest in the sector runs high.
Panthera Group has divested its Terrace Central shopping centre at 30 Sturgeon Street, Raymond Terrace.
Argus Property Partners acquired the centre after a sale campaign co-ordinated by CBRE’s James Douglas, James Sherley and Savills’ Steve Lerche.
Interest for the asset was received from institutional and syndicator capital as well as private investors.
The buyer was introduced and sale negotiated by CBRE’s James Douglas and James Sherley with the price reflecting a passing yield of 6.37 per cent.
Douglas said Panthera had completed strategic initiatives at the centre during its ownership.
He said there were further value-add opportunities on offer for Argus to “drive asset performance and returns”.
Raymond Terrace is a growing regional hub 165km north of Sydney and 27km north of the Newcastle city centre. The centre’s Woolworths supermarket is secured on a long-term lease and is paying percentage rent.
Woolworths and BWS completed an internal refurbishment at the centre in 2022 and have committed to new 10-year leases to 2032, with the supermarket’s sales in excess of its turnover threshold.
The 6978sq m centre occupied a land-rich, 17,453sq m freehold site, providing abundant carparking, high exposure and favourable accessibility, the agents said.
CBRE’s Sherley said demand for NSW neighbourhood shopping centres remained robust, particularly for assets such as Terrace Central that offered strong growth prospects.
“The population in the main trade area is forecast to increase by 1.7 per cent p.a. and its above-benchmark supermarket performance provides compelling rental growth potential,” he said.
Forecast government and private investment within the immediate region is to exceed $2.4 billion, including the $2.1-billion M1 Pacific Highway Extension, which is slated for completion in 2028, and the Newcastle Airport upgrade due to be completed this year.
The centre has been positioned to benefit from this investment and from key greenfield residential developments in the main trade area, including the masterplanned Kings Hill community, which is 6km north of the centre.
Kings Hill is expected to comprise more than 3000 lots accommodating more than 10,000 residents.
