Coles Group Property Developments is moving to sell the strongly performing Huntlee Shopping Centre in the NSW Hunter Region amid strong investor demand for neighbourhood retail assets.
CBRE’s James Douglas and Colliers’ James Wilson and Ben Wilkinson have been appointed to steer the Expressions of Interest process, which is expected to generate significant interest from a range of private, syndicate and institutional investors.
The 4,624m2 convenience-based centre is anchored by an exceptionally strong performing full-line Coles supermarket and Liquorland outlet, supported by 11 specialty retailers, including a medical centre, pharmacy and allied health usages.
The North Rothbury centre is 100% leased and boasts a highly secure and attractive lease expiry profile.
Coles and Liqourland have committed to new 10-year net leases to 2033, with options until 2083, securing 66% of the centre’s gross income.
CBRE’s James Douglas said: “Huntlee Shopping Centre provides a rare opportunity to acquire a new, dominant and strong performing Coles anchored shopping centre, which is set to enjoy real sales and income growth courtesy of its rapidly growing trade area.
“The investment provides opportunities to enhance the centre’s income through Coles’ performance and the specialty tenant profile, as well as offering a high degree of expense protection, predominantly via the favourable Coles net lease.”
Expressions of Interest close Thursday, 19 October 2023
Colliers’ James Wilson added, “Huntlee Shopping Centre is an exceptionally well-presented neighbourhood shopping centre that was recently developed by Coles Group Property Developments. The centre features a convenient design and minimal management given over 75% of the GLA is secured by Coles and Liquorland.
“We anticipate strong receive strong local and interstate investor interest given its location within the iconic Hunter Valley wine region, with the NSW Hunter Region generating a GDP of approximately $45 billion.”
Huntlee is strategically located at the gateway to the renowned Hunter Valley wine region, 55km west of Newcastle. It forms part of a major greenfield residential area identified in the Lower Hunter Regional Strategy, which expected to be gradually developed over the next few decades to accommodate in the order of 7,500 new dwellings and more than 20,000 residents as well as associated retail, commercial, community and employment uses.
Forecast government and private investment in Huntlee is set to exceed $1.5 billion over the next 20 years, including the delivery of affordable housing, primary and senior schools, education facilities and services, health services and infrastructure.
The centre also benefits from the immediate surrounding trade area growth and development, with the main trade area resident population forecast to grow by 3.1% p.a. (more than triple the NSW non-metropolitan average) and reach 23,079 people by 2041.
Current retail spending in the trade area is estimated at $299.8 million and is expected to reach $799.7 million by 2041, reflecting robust growth of 5.6% p.a with food retail and food catering expenditure growth of 5.8% and 6.3% per annum respectively, according to LocationIQ.
