- Transaction was made with a 6.50% capitalisation rate
- The property has changed hands from Woolworths Group to a private investor
- The next closest sub-regional shopping centre is circa 145 km away
Sapphire Marketplace, a shopping centre on the NSW south coast in Bega has been acquired by a private investor for $54.05 million, highlighting the demand for sub regional shopping centres.
The deal was made on a 6.50% capitalisation rate.
The property was put on the market by Woolworths Group, with the sale negotiated by CBRE’s James Douglas.
“The public sale process for Sapphire Marketplace drew strong interest from institutional and private capital sources.”
“There is no shortage of demand for quality sub-regional assets, given the current yield spread relative to neighbourhood shopping centres.”
James Douglas, CBRE Senior National Director
Totalling at 17,310sqm, Sapphire Marketplace contains both retail (15,327sqm) and commercial (1,983sqm) space.
Woolworths makes for a strong anchor for the centre, along with a Dan Murphy’s liquor and the only full-line Big W discount department store within 200km.
The WALE for these major tenants is 8.4 years.
Bega’s Sapphire Marketplace is the only sub-regional shopping centre within a 145km radius.
“Given the tight pricing being achieved for neighbourhood centres, we have seen astute investors tailor and adapt their investment strategies to target high-quality sub-regional shopping centres, which feature a strong major tenant profile and a sustainable number of specialty retailers with a focus on non-discretionary spending,” Mr Douglas said.
“Sapphire Marketplace’s three strongly performing major tenants and 22 specialty shops align with this market investment shift.”