NSW mall Lisarow Plaza has been purchased by national property fund manager Primewest for $29.1 million.
The centre, located on the NSW Central Coast, is anchored by a full-line Coles supermarket and Liquorland store, and supported by 16 specialty tenants, one kiosk and two ATMs over a total GLA of 5,250sqm. The deal was brokered by Colliers International.
John Bond, Primewest director, said the acquisition was in line with the company’s retail strategy along Australia’s eastern seaboard.
“Lisarow Plaza is a strategic acquisition will sit in the same fund as Hunta Super Centre,” Bond said. “We targeted Lisarow Plaza due to the high quality of its recent refurbishment, including an expanded Coles supermarket featuring a new 20-year lease, combined with the ability to leverage our asset management capabilities by actively managing the specialty lease profile given the supermarket trade has almost doubled in the precinct over the last 2 years.”
Primewest manages one of Australia’s property fund operations, with over $2.3 billion in assets.
James Wilson, Colliers international director of retail investment services, said Lisarow Plaza’s fully leased yield of 6.22 per cent is a great result compared to other NSW non-metro neighbourhood shopping centre transactions announced so far in 2017.
“The campaign demonstrates the ability of prudent retail investors to constantly review their hurdle rates based on the quality of the centre, noting the strata titled nature had little impact on investors appetite for the centre,” Wilson said.
There were “unprecedented levels” of interest from local and offshore private investors, according to Colliers.
“The large number of competitive yet unsuccessful bidders is testament to the highly desirable nature of the neighbourhood shopping centre investment class given it comprises of largely non-discretionary retail.”
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