Cameron Park Plaza
Cameron Park Plaza. Image supplied.
  • Comes the same day Centuria announced the acquisition of a healthcare development site in Sydney
  • 11 first-round offers were received
  • Located in Newcastle's Western Growth Corridor

Sales activity among convenience-based neighbourhood shopping centres continues, with Colliers recently announcing the sale of a Newcastle shopping centre.

The centre has been sold to Centuria, who also announced the acquisition of a healthcare development in Sydney on the same day.

The Woolworths-anchored Cameron Park Plaza was marketed for sale by James Wilson and Alex James-Elliot of Colliers on behalf of Fabcot, the Woolworth’s Group development business.

The sales campaign attracted both high net worth private investors and institutional capital, resulting in over 180 purchaser enquiries and 11 first-round offers.

“Cameron Park Plaza generated incredibly competitive bidding from private and institutional investors, with the non-metro NSW Neighbourhood Shopping Centre campaign recording 5 offers at or below a 5 per cent fully leased yield,” Mr Wilson said.

“The benchmark result highlights the depth of market targeting high quality Neighbourhood Shopping Centres that feature strong income growth potential.”

James Wilson, Colliers

Along with Woolworths and BWS, owned by Woolworths’ spin-off Endevaour Group, the 7,037 sqm centre features a medical centre, PETstock, Snap Fitness and 17 speciality shops. Over 90% of income is underpinned by national and chain retailers.

The centre was constructed in September 2020 and is situated in Newcastle’s Western Growth Corridor, 17 kilometres west of the Newcastle CBD and 110 kilometres north of Sydney’s CBD.

“The campaign has resulted in circa $500 million of qualified, undeployed capital, that is required to be invested,” Mr James-Elliott said.

“We are currently working with a select number of the underbidders seeking to secure similarly strong performing neighbourhood shopping centres in NSW regional and metropolitan locations.”

The sale represents the first NSW neighbourhood shopping centre sale and leaseback from either Woolworths or Coles during the past year.

The 3.77 hectare site is zoned B2 Local Centre and has a low site coverage of 18.6%.

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