Coles has listed Andergrove Village Shopping Centre for sale, amid strong private investor demand for the asset class.
The centre, located at 35 Oak St, Andergrove, opened in 2021 and is anchored by a 10-year lease to Coles, which is the largest and top performing supermarket in the main trade area, occupying 84% of the centre’s GLA.
Positioned on a 2.437ha land holding, Andergrove Village includes a 4,800m2 vacant parcel of land with the potential for additional specialty stores, or complementary uses including childcare, fast food, or a car wash (STCA).
CBRE’s Joe Tynan and Michael Hedger are managing the sale via an Expression of Interest campaign on behalf of Coles Group Property Developments Ltd.
“Given the pent-up demand we are seeing in the market, particularly for brand new shopping centres, we expect Andergrove Village to generate interest from both domestic and international investors,” Hedger said.
“With construction prices rising, 780,000m2 of future shopping centre supply is estimated over 2024 to 2028, less than half of historical average, positioning this nearly new asset well below replacement costs.”
Tynan added, “The additional allotment offering is unique and gives our incoming purchaser the opportunity to create long-term flexibility and accommodate the increase in demand in the trade area. We expect potential buyers to see this land as a long-term opportunity and significant upside for the existing centre”
“CBRE Research forecast retail sales will grow to $500 billion by the end of the decade, 70% over 2020’s prediction. This along with the forecasted triple boot of population growth makes this investment appealing.”
