- Following ongoing investor interest for non-discretionary retail investment options, Woolworths Group (WOW) plans to sell Sapphire Marketplace in Bega
- The 17,310sqm centre, which includes 15,327sqm of retail and 1,983sqm of office space, is anchored by a unique triple major tenant profile
- CBRE’s Simon Rooney says investors are targeting high-quality sub-regional shopping centres
- With a major tenant weighted average lease expiry (WALE) of 6.7 years, the centre’s strong major tenant profile captures 65 per cent of the gross passing income
Following ongoing investor interest for non-discretionary retail investment options, Woolworths Group (WOW) plans to sell Sapphire Marketplace, a triple major sub-regional shopping mall.
Sapphire Marketplace is located in Bega on the New South Wales south coast, 423 kilometres south of Sydney and 225 kilometres south of Canberra.
Simon Rooney and James Douglas of CBRE have been recruited solely to oversee the sales campaign, which is expected to attract considerable interest from a variety of individual, syndicate, and institutional investors.
The 17,310sqm centre, which includes 15,327sqm of retail and 1,983sqm of office space, is anchored by a unique triple major tenant profile that includes a Woolworths grocery store, Dan Murphy’s liquor outlet and the only full-line Big W discount department store within 200km.
With a major tenant weighted average lease expiry (WALE) of 6.7 years, the centre’s strong major tenant profile captures 65 per cent of the gross passing income.
“Over the previous 24 months, the centre has recorded strong turnover performance and year-on-year sales growth,” Mr Rooney said.
“This robust performance demonstrates the invaluable role that shopping centres such as Sapphire Marketplace continue to play as a key community focal point, particularly in Australia’s regional locations.”
“Given the tight pricing being achieved for neighbourhood and freestanding retail assets, we have seen astute investors tailor and adapt their investment strategies to target high-quality sub-regional shopping centres.”
Mr Rooney said investors are seeking retail assets which feature a strong major tenant profile and a sustainable number of specialty retailers, with the tenant mix focused on non-discretionary spending.
“Sapphire Marketplace’s three strongly performing major tenants and 22 speciality shops aligns with this market investment shift,” he said.
The well-established main trade area population of 39,630 residents benefits from significant annual tourism within the Bega Valley Shire, with spending expected to be $424 million in 2019 and accommodating approximately 2.48 million visitor nights – equivalent to 20 per cent of the resident market or 6803 additional permanent residents.
According to LocationIQ, Sapphire Marketplace is also expected to benefit from a strong MTA retail spending capacity of $647.1 million, which is expected to increase to $990.0 million by 2036, with food retail and food catering expenditure growth of three per cent and 3.5 per cent per year, respectively.