Private Investor snaps up Elermore Shopping Centre

Private Investor snaps up Elermore Shopping Centre
Private Investor snaps up Elermore Shopping Centre

For the first time in seven years, the Elermore Shopping Centre in Elermore Vale, nine kilometres west of Newcastle has sold.

A private syndicate has snapped up the neighbourhood centre for around $18 million on a 6.8 per cent passing net yield.

Located at 133 - 137 Croudace Road, the single level, enclosed and strong performing centre comprises a large Ritchies SUPA IGA supermarket supported by 17 non-discretionary specialty tenants.

There's 4,048 sqm of gross lettable area on a 23,882 sqm site including additional land ready for development, car parking for 235 vehicles and an estimated fully leased net income of around $1.44million.

Steven Lerche, national director of retail investments at Savills Australia, sold the asset with Andrew Palmer and Ben Nastasi on behalf of Bamm Group

The Elermore Shopping Centre purchase six years was timely according to Ben Nastasi, with Bamm Group more than doubling their capital after their $8.3 million purchase.

Steven said said investment activity is strong in Newcastle. 

“Newcastle is seeing a surge in investment activity, largely stimulated by the $6.55 billion State Government investment mandate which has brought to light the new light rail system on Hunter Street, the new transport interchange at Wickham, construction of the Newcastle City University Campus and much more," he said.

“We are seeing a lot of investor interest come from the Sydney investment market and interstate markets such as Melbourne and Brisbane due to the significant growth prospects of Newcastle. 

“Retail assets have been in particular favour with developers due to their strategic locations, large site area, existing income stream and potential to re-develop under the existing planning controls.

Newcastle is the largest regional economy in Australia and is the second most populated area in NSW.

Elermore Vale is a popular and established residential suburb surrounded by schools, childcare centres and community facilities, with a key primary population of 5,759* residents and an estimated population of 20,459* within the main trade area.

Andrew Palmer said Elermore Vale and its surrounding suburbs are set to reap the benefits of this surge in investor demand.

 

 

 

 

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

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Newcastle Commercial Sales

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