shopping centre
The shopping centre is home to a range of major retailers. Image supplied.
  • The dual supermarket centre is located 250 kilometres west of the Melbourne CBD
  • 6.2 million cars pass by the centre annually
  • Comes as the Shepparton Marketplace sold off-market recently for $88 million

Gateway Plaza Shopping Centre, located in Warrnambool, has been listed for sale by Colliers, with price expectations of $70-million plus.

The dominant dual supermarket and discount department-anchored sub-regional shopping centre is located in the eighth largest regional city in Victoria, 250 kilometres west of the Melbourne CBD.

6.2 million vehicles pass by the centre annually, given its Princes Highway position, with the centre benefiting from a highly captive and expansive trade area. The closest competing centre is more than 165km away.

65% of the centre is weighted to major tenants Coles, Kmart and Aldi, with a 95% weighting to national and chain tenants by gross leasable area, including Chemist Warehouse, The Reject Shop and Best & Less. There are 31 speciality tenants.

Gateway Plaza has an almost full occupancy score of 99.4%, with a annual net income of $4.34 million, with scope to increase this further through tenancy remixing.

Appetite for large regional assets remains strong

gateway plaza
Gateway Plaza in Warrnambool. Image supplied.

The centre is the largest commercial 1 landholding in Warrnambool, covering 6.2 hectares with 926 car spaces and low site coverage of 28% providing significant value-add opportunities (STCA).

5.6-hectares of undeveloped commercial 1 zone that adjoins the centre will be sold separately.

Lachlan MacGillivray, Colliers Managing Director, Asia Pacific, Retail Capital Markets, said that astute investors are continuing to focus on quality and dominance while pursuing sub-regional centres nationally.

“There has been heightened investor activity for sub-regional centres particularly in regional locations, with FY22 experiencing over $1.4 billion in non-metro sub-regional sales nationally, more than double the previous financial year at $675 million.”

Lachlan MacGillivray, Colliers

Tim McIntosh, Director for Retail Middle Markets Victoria, Colliers, said the centre will appeal to private, syndicate and institutional investors, due to its strategic location, and the catchment area currently experiencing annual population growth twice of that compared to the non-metro Victorian average.

“What is unique about Gateway Plaza compared to other sub-regional shopping centres in strong regional cities such as Geelong, Bendigo and Ballarat is the monopolistic advantage Gateway Plaza enjoy,”. Mr McIntosh said.

“Where else can you find a sub-regional centre in Victoria with the closest competition more than 165km away?”

Tim McIntosh, Colliers

The listing comes following the recent off-market sale of Shepparton Marketplace, which was acquired by Singapore-based Sim Lian – Metro Capital from Dexus for $88.1 million, reflecting a 6.25% capitalisation rate.

The international expressions of interest campaign closes Thursday, 10 November.

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