Fortius Funds Management has put Newcastle’s Junction Fair Shopping Centre on the market, in a move expected to generate strong buyer interest. Located at the intersection of Newcastle’s most affluent suburbs – The Junction, Cooks Hill, Merewether and Bar Beach – the 7,226sqm neighbourhood shopping complex is anchored by a strong performing Coles supermarket that occupies 65% of the centre.
The centre, which is underpinned by a 11,250sqm landholding, also includes two destination mini-majors that are complemented by 22 specialty retailers. The centre provides a net annual income return of approximately $3.2 million.
Fortius Funds Management has implemented an extensive revitalisation and repositioning strategy since acquiring the centre and has appointed CBRE and Stonebridge to manage the sale.
Fortius’ Sam Sproats commented, “Our group has undertaken a regeneration of this fundamentally sound asset in a thriving demographic precinct. Several years back we undertook a rigorous process to understand our customer and consumer. It may sound obvious, but in retail it’s critical to understand your local community and be a genuine participant to reap the rewards of (shopper) loyalty.”
“The centre is in a great location in a constantly improving demography and surrounded by three schools. We have spent considerable time ‘rolling the sleeves up’ and ensuring we got the strategy and detail right for this shopping centre. In some cases, we hand-picked the desired retailers to create a real village style retail and community experience, which the affluent locals can rightly be proud of.” he said
CBRE’s Nick Willis and Stonebridge’s Philip Gartland have been appointed to market the property on behalf of Fortius Funds Management. Willis said the sale campaign coincided with growing investment interest in the neighbourhood shopping centre market.
“In the current market there has been a shift in investor demand to non-discretionary based retail assets that provide a defensive income stream. With quality neighbourhood shopping centre supply remaining constrained (particularly in NSW) – down 63% in 2018 (CBRE Research), opportunities such as Junction Fair should be strongly considered and sought after,” Willis said.
“The robust performance of non-discretionary retail centres, particularly those with destination/experiential offers like Junction Fair, remain in strong demand. The Essential Ingredient’s cooking school is a great example of experiential retail.”
Gartland indicated ongoing private and government investment in Newcastle would continue to position the city as a favourable destination for capital.
“Due to its proximity to Sydney, its diverse economy and lifestyle attributes, Newcastle is reaping the benefits of significant government and private infrastructure spending and is rapidly evolving into a metropolitan city.” Gartland said
Key infrastructure and projects in the city include the new $310 million light rail, the Hunter Street Mall redevelopment that will see over 4,000 new dwellings over the next 17 years and the proposed expansion of the International Airport.”
The property is being offered for sale via International Expressions of Interest closing Thursday 11 April.
