Dual Woolworths and ALDI-anchored Newcomb Central shopping centre listed for sale
In what has remained a tightly held sector, the Victorian neighbourhood shopping centre market is soon to be tested with the offering of Newcomb Central Shopping Centre in Geelong,
Newcomb Central is a double supermarket anchored neighbourhood shopping centre of 8,727sqm, complemented by 24 predominantly non-discretionary specialty shops.
The major tenants include Woolworths and ALDI supermarkets, both on long leases and performing above industry averages. The centre is essentially two shopping centres in one, as the Woolworth portion was exsisting and the ALDI portion was developed much later and built on council land to incorporate the purpose-built supermarket.
CBRE’s Mark Wizel, Justin Dowers and Kevin Tong will steer the sale campaign for the centre, located in Victoria’s second largest city and one of Australia’s fastest growing regions, with Geelong’s population of over 245,000 forecasted to reach 325,000 by 2036 – a 30% increase.
Mr Dowers noted that the campaign coincided with ongoing investor interest in convenience-based shopping centres.
“The retail market is almost performing in two separate spheres, with buyer interest in the convenience market remaining quite buoyant and pricing does not appear to be challenged based on the results achieved this year,” Mr Dowers said.
“For assets with a long WALE and low tenancy risk, investors are still seeing value and lenders are attracted to the income security of convenience centres, which continues to be a driver of buyer enquiry,”
Mr Dowers added; “When there was volatility during the GFC, supermarket-based convenience centres outperformed other asset classes. They are defensive assets, which is why the buyers of these centres are generally taking a longer, generational type view on these investments.”