Colliers’ Lachlan MacGillivray, Tim McIntosh and Mike Crittenden are exclusively appointed to sell Gateway Plaza Shopping Centre, a dominant dual supermarket and discount department store anchored sub-regional shopping centre.
Gateway Plaza is located in Victoria’s 8th largest regional city, Warrnambool, 250km west of the Melbourne CBD. Strategically positioned on the major arterial road Princes Highway with 6.2 million vehicles passing annually, the centre benefits from a highly captive and expansive trade area population, with the closest competing centre more than 165km away.
The centre offers a 65% weighting to major tenants Coles, ALDI and Kmart and a 95% weighting to national and chain tenants by GLA, including mini-majors Chemist Warehouse, The Reject Shop and Best & Less, along with 31 specialty tenants.
Gateway Plaza has a secure 99.4% occupancy across 17,526m2 of GLA and generates an annual net income of $4.34 million with scope to drive further income growth through tenancy remixing.
Gateway Plaza is located in Warrnambool, 250km west of the Melbourne CBD
With price expectations in excess of $70 million, the centre represents the largest commercial 1 landholding in Warrnambool, covering 6.2 Ha with 926 car spaces and low site coverage of 28% providing significant value-add opportunities (STCA).
To be sold separately, is 5.6 Ha of undeveloped commercial 1 zone that adjoins the centre, providing multiple development outcomes including mixed-use retail and commercial or residential (STCA).
Colliers Managing Director, Asia Pacific, Retail Capital Markets, Lachlan MacGillivray, said that astute investors continue to focus on quality and dominance when pursuing sub-regional centres across Australia.
“There has been heightened investor activity for sub-regional centres particularly in regional locations, with FY22 experiencing over $1.4 billion in non-metro sub-regional sales nationally, more than double the previous financial year at $675 million,” said MacGillivray.
Gateway Plaza boasts major tenants Coles, ALDI and Kmart
Director for Retail Middle Markets Victoria, Tim McIntosh, said Gateway Plaza will appeal to private, syndicate and institutional investors, due to the strategic location in one of Victoria’s biggest regional cities, with double the annual population growth compared to the non-metro Victorian average.
“What is unique about Gateway Plaza compared to other sub-regional shopping centres in strong regional cities such as Geelong, Bendigo and Ballarat is the monopolistic advantage Gateway Plaza enjoys. Where else can you find a sub-regional centre in Victoria with the closest competition more than 165km away.” McIntosh said.
Gateway Plaza benefits from a highly captive and expansive trade area population
The forthcoming campaign for Gateway Plaza follows the recent off-market sale of sub-regional shopping centre Shepparton Marketplace, acquired by Sim Lian – Metro Capital from Dexus for $88.1 million, reflecting a capitalisation rate of 6.25%.
Gateway Plaza Shopping Centre is listed for sale via an International Expressions of Interest campaign, closing Thursday, 10 November 2022.
