A neighbourhood shopping centre anchored by a high-performing Woolworths supermarket has come to market in Newcastle’s emerging northern growth corridor.
Holding a prime position within the Raymond Terrace town centre, with a GLA of 7,002m2, Terrace Central Shopping Centre is anchored by a recently refurbished Woolworths and BWS, three mini majors including The Reject Shop, Australia Post and a Medical Centre, 23 specialty tenants and two ATMs.
More than 80% of the centre’s GLA and gross passing income is secured by national or chain tenants, while utilising approximately 40% of the 17,453m2 site in a region that continues to rapidly grow and expand.
Terrace Central Shopping Centre is exclusively listed with Colliers’ James Wilson and Ben Wilkinson, with price expectations over $50 million.
“Terrace Central Shopping Centre offers value add investors the security of a brand new 10-year Woolworths supermarket that is trading 20% above Urbis benchmarks. Potential repositioning may capitalise on recent CAPEX works invested by Panthera Group, including the recent addition of Woolworths direct to boot, providing a point of difference to competing offerings in the catchment,” Wilson said.
The recently upgraded 4,090m2 Woolworths is supported by the inclusion of the only Direct to Boot service within the main trade area. On top of this, the site comes with 257 parking spaces and B3 Commercial Core zoning.
The NSW Hunter Region neighbourhood shopping centre is for sale by Colliers
“New South Wales recorded only $386 million in value of 2022 Neighbourhood Shopping Centre transactions, which was 70% less than the previous year. Colliers anticipates limited supply to continue for high-quality Neighbourhood Shopping Centre opportunities,” added Wilson.
“Terrace Central Shopping Centre is the only convenience Neighbourhood Shopping Centre in the MTA with on-grade parking, reflecting a greater value proposition for convenience retail. With specialty rents sitting 25% below Urbis benchmarks, there is an opportunity for investors to capitalise on positive rental reversion, given the strong performing Woolworths supermarket,” Wilkinson said.
The Newcastle and Hunter region will benefit from a number of new infrastructure projects, including the $55 million Newcastle Airport expansion and the $2.1 billion M1 Pacific Motorway extension to Raymond Terrace, which will provide further connections to the Sydney area.
The region is set up for a prosperous economic future as well, especially in the growing aviation, defence and advanced manufacturing industries. The City of Newcastle and Port Stephens Local Government Areas are home to over 244,000 people, which is supported by 147,000 jobs in both regions.
The Main Trading Area’s population is expected to grow at an average annual rate of 1.5% between 2021 and 2041, which is three times the non-metro average in NSW. Terrace Central Shopping Centre’s MTA retail expenditure is estimated at $417.7 million and projected to increase to $831.2 million by 2041, representing an average annual growth rate of 3.9% per annum.
Terrace Central Shopping Centre is being marketed via an Expressions of Interest (EOI) campaign, closing 28 March 2023.
