Colliers, on behalf of the Griffith Group, have secured the impressive transaction of The Bayview Centre on the NSW South Coast for $57 million, representing the highest Large Format Retail (LFR) deal executed nationally this year.
Bayview Centre in Warrawong, which opened in December 2023, occupies a strategic tightly held corner site in the Illawarra Region, and boasts 100% occupancy rate to national retailers including Beacon Lighting, Super Cheap Auto, Pillowtalk, JB Hi-Fi, Trek, Autobarn, RTM and Amart Furniture.
Colliers Head of Retail Middle Markets James Wilson and Ben Wilkinson exclusively secured the sale of the brand-new LFR Centre to MLC Asset Management in an ‘off market’ process at an LFR core cap rate of 5.75%. The strong result was secured with the Griffith Group delivering one of only a few Large Format Retail Centres constructed nationally in the current cycle.
It’s the third LFR Centre MLC Asset Management has acquired, all through Colliers, following the purchase of Chirnside Lifestyle Centre in Melbourne and Great Western Centre in Sydney.
“Institutional and private investor appetite for Large Format Retail Centres continues to grow given the sector offers investors strong income growth from high profile national retailers strategically located in growing catchments,” said Wilson.
“The sale of Bayview Centre is the largest LFR transaction recorded this year. The strong result reflects the high quality of the Griffith Group development, combined with the limited brand new investment opportunities given the current construction hurdles.”
“The addition of the Bayview Centre to our Property Plus portfolio is a good example of our well planned rotation out of commercial office and into the Large Format Retail sector,” Simon Gross, Head of Property at MLC Asset Management, said.
“We have every expectation that our investors will benefit from the relatively high and secure rental distributions as well as the long-term nature of the national retail tenant leases at the centre.”
Bayview Centre is the largest trophy divestment for the Griffith Group having acquired the site in 2020 from Blackstone. Despite construction and access obstacles encountered by developers since COVID, the Griffith Group were able to deliver an institutional grade development that was 100% fully leased to high profile national retailers on the first day of trading in December 2023.
Located 92km from the Sydney CBD, Bayview Centre has a site area of 24,300m2 and a GLAR of 10,735m2 benefitting from significant vehicular exposure courtesy of arterial King Street and Northcliffe Drive. It also comes with a WALE of 7.92 years.
