Tamworth Homespace, a large format retail (LFR) centre, has come to the market in regional NSW. JLL’s Nick Willis, Sam Hatcher, Sebastian Fahey and David Mahood have exclusively been appointed to sell a 100% interest in the centre via an Expressions-Of-Interest campaign.
Anchored by The Good Guys and Fantastic Furniture and supported by a mix of 13 large format retailers, Tamworth Homespace provides an attractive weighted average lease expiry (WALE) of four years and a secure income stream with future growth opportunities to increase income.
Willis said, “The large format retail sub-sector has seen a resurgence in investor appetite in recent years. Spurred largely by the strong trading performance of the retailers, coupled with the forecast rental growth and the irreplaceable nature of the assets given the significant increases in construction costs recently. Furthermore, LFR assets have been tightly held with no centres trading in the year to date, and sales volumes down on the increased trading activity of last year which was up 76% on the historic five-year average.”
Tamworth Homespace, provides investors a unique opportunity to acquire a centre that has over 96% of its income derived from national retailers with an average tenure of 11 years, demonstrating strong tenant retention and the overall strength of the Tamworth economy.
“Tamworth Homespace is the first traditional LFR centre to be offered to the market formally this year and we expect strong interest from a broad capital pool.” added Willis.
Flexible zoning and pad site tenancies allow for the opportunity to enhance Tamworth Homespace’s retail offering
Positioned on a significant 31,160m2 land holding, the centre offers flexible zoning allowing opportunity for development and value-add strategies, including freestanding pad sites given its 200 meters of frontage along the New England Highway.
Hatcher said, “Large format retailers are expanding their businesses due to strong sales performance, however limited new developments and higher construction costs are resulting in rental growth pressure. As a result, large format retail was one of only two retail property sub-sectors to record a decline in vacancy rates since the onset of COVID-19.”
“This highlights the centre’s low average rent of $195/m2 and the likelihood of positive rental reversions in the future, which will drive income growth from the asset. In addition, the centre’s flexible zoning and pad site tenancies allow for the opportunity to enhance Tamworth Homespace’s retail offering through the inclusion of drive-thru facilities (STCA).”
Expressions of Interest for Tamworth Homespace close on 29th June 2023
Tamworth is recognised as being the largest inland city in NSW west of the Great Dividing Range and is home to major attractions such as the Tamworth Country Music Festival and the Big Golden Guitar.
Mahood added, “Tamworth has seen a significant increase in population, and is benefitting from a wave of new residential developments, with more than 3,700 lots either proposed or approved, and a strong annual household income growth of 3.7% p.a.”
Expressions of Interest for Tamworth Homespace close on 29th June 2023.
