East End Village Newcastle
Iris Capital has listed for sale their East End Village retail development, in a bid to redeploy capital towards the subsequent stages of the East End project. Image supplied.
  • Iris Capital's East End Village has hit the market, with agents from JLL and Commercial Collective appointed to the sale
  • The retail precinct was completed as part of Stage 1 of the East End Master Plan Project
  • Developer Sam Arnaout says the proposed sale of East End Village will help to reallocate capital towards completing subsequent stages

Iris Capital, led by prominent developer Sam Arnaout, has listed for sale its inner-city shopping precinct, East End Village.

The Woolworths Metro-anchored shopping village consists of 14 additional specialty stores and spans 2,768 sqm of Net Lettable Area.

East End Village forms part of Iris Capital’s larger mixed-use development plans within the Newcastle area, known as the East End Master Plan Project.

JLL‘s Nick Willis and Dylan McEvoy, alongside Commercial Collective’s Adam Leacy, have been appointed to the sale of East End Village via an international Expressions of Interest campaign.

Retail precinct forms part of Newcastle revitalisation

East End Village opened earlier this year, signifying the completion of the East End Master Project’s primary phase.

Stage 1 comprised of three mixed-use buildings centred around a small public piazza, delivering 206 apartments to the Newcastle area.

Construction on the second phase is currently underway, consisting of 112 units and five terrace-style houses.

Planning for Stages 3 and 4 has not yet been finalised, though is expected to deliver 300 additional units upon completion.

JLL’s Dylan McEvoy said the retail precinct is set to become a vital piece of social infrastructure in Newcastle, the state’s second-largest city behind Sydney.

“East End Village will service a wide geographical catchment with a total trade area of 173,000, with an additional 30,000 within a 3 km radius.”

Dylan McEvoy, JLL

“In total, the East End project is estimated to be home to around 1,500 residents living across the four stages of the development in the next five years. There are an additional 1,400 homes across 10 development projects surrounding Newcastle.”

Mr McEvoy added that the retail precinct has been strategically positioned, hoping to capitalise on surrounding residential development and the newly opened QT hotel.

East End Newcastle
East End Newcastle by Iris Capital. Image – Iris Capital.

East End Village consists solely of essential service retailers, providing daily needs, food and services. The shopping precinct offers buyers a total net income of $2.7 million and an attractive 3.4-year weighted average lease expiry.

Iris Capital CEO Sam Arnaout said the listing has followed the completion and tenanting of East End Village, with the development group now turning its focus towards delivering the subsequent stages of the East End project.

“We’re absolutely delighted with the success of what we have created within the precinct, in particular the quality of businesses that have been drawn into Newcastle CBD and East End Village,” he said.

“Given retail is not within our core business and the fact that we are almost at 100% occupancy, we have decided to sell the asset and redeploy capital to other projects.”

Sam Arnaout, Iris Capital CEO

Mr Arnaout added that Stages 3 and 4 of the project will now become Iris Capital’s primary focus.

The retail precinct is expected to generate strong interest from investors and high-net-worth individuals, both local and international.

According to JLL’s Nick Willis, investment supply in retail has been relatively constrained this year in comparison to 2021, when retail trade totaled $12.9 billion.

“Offers such as East End, being brand new and providing significant growth potential are rarely provided in the market,” concluded Mr Willis.

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