elermore vale shopping centre sold for 27 million
The shopping centre close to Newcastle’s CBD sold for twenty seven million dollars. Image: Supplied.
  • The centre was previously sold in 2017 for $17.5M
  • The neighbourhood shopping centre includes a Ritchies IGA
  • The centre is located some 10km from the Newcastle CBD

The Elermore Vale Shopping Centre, in Newcastle’s West, has been sold in an off-market transaction for $27 million, achieving a 4.80% passing yield at a rate of $6,645 per square metre of gross lettable area (GLA).

JLL‘s Sebastian Fahey, Dylan McEvoy and Nick Willis together with Stonebridge’s Phillip Gartland and Alexander James-Elliott sold the property on behalf of TAMIM Funds Management.

The neighbourhood shopping centre comprises Ritchies IGA, along with 15 specialty stores; the income is 100% weighted toward non-discretionary uses.

Situated on a 2.38 hectare landholding, the 4,063 sqm centre has 235 secure at-grade bays.

The property was previously sold in 2017 for $17.5 million, a doubling of its 2011 purchase price of $8.3 million; the property went from Bamm Group to TAMIM.

“The asset attracted considerable interest due to the value-add opportunities, given its high growth metropolitan location offering plus significant future development upside,” said Fahey.

“Only 10 kilometres from the Newcastle CBD, the sale of Elermore Vale highlights the clear demand for retail assets in attractive metropolitan locations with significant growth prospects.”

“In the current changing economic environment, the ability to secure a neighbourhood shopping centre with tangible competitive advantages and genuine value add opportunities is highly attractive in the current market,” Fahey added.

“The centre’s protection against future competition as the only mixed-use land holding within Elermore Vale and immediate access to approximately 31,637 residents is a major drawcard,” said James-Elliott.

“Investors are recognising that Newcastle is a strong location to place capital, and its renewal and subsequent gentrification through private and public investment is significant and will continue to attract investors to this market,” said Mr James-Elliott.

“Elermore Vale Shopping Centre was a foundation asset for our group when it was acquired in 2017 for $17.5m,” said TAMIM co-founder Jeff Taitz.

“The asset suited our managerial capabilities and performed to expectations during the COVID-19 crisis due to our emphasis on retaining and securing non-discretionary tenancy composition. I believe our investors will be very satisfied with the return it has provided,” said TAMIM co-founder Jeff Taitz.

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