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Albury Convenience Centre sells for $29.5 million

The Albury Convenience Centre has been acquired by Melbourne based investors Collective Capital

The Albury Convenience Centre has been acquired by Melbourne based investors Collective Capital for $29.5 million reflecting a yield of 6.21%. The transaction was negotiated by JLL’s Stuart Taylor, Tom Noonan and Nick Willis. 

The newly opened retail centre comprises a Gross Lettable Area of 9,690m2 with 224 car parks on title is anchored by the 4,453m2 flagship supermarket by Harris Farm Markets.

The Centre was offered for sale exclusively by JLL Retail Investments on behalf of the owner, a syndicate managed by FINDEX – Financial Advisory and Accounting Services firm.

Stuart Taylor, Senior Director of Retail Investments at JLL said “The asset received significant market interest, with investors particularly attracted to the incorporation of a Harris Farm supermarket use into a Large Format Retail asset.”

The asset sits on a high profile 14,250m2 corner site in the heart of the Albury-Wodonga region

“Tom Noonan, Director of Retail Investments at JLL said “The hybrid asset comprises a tenant mix which has been the key beneficiaries of changes in spending habits, being Household Good retailers and Supermarkets”

Dale O’Dwyer, Director of Collective Capital said “We always invest in high growth locations and, in particular, properties that deliver both secure income streams and opportunities for yield uplift through the type of customer-focused design upgrades that our business has become known for. The Albury Convenience Centre ticks all those boxes and is a welcome addition to the Collective Capital portfolio”

“The sale adds to the strong run of retail investment transactions in Australia’s regions. Demand is being driven by strong retailer performance in regional areas, resulting from population movements and changing consumer habits, overlayed with a shortage of metropolitan assets being presented to market. The increased demand is translating to higher deal volumes and significant yield compression.” Taylor added.

Formerly a Bunnings Warehouse, the property underwent a conversion and refurbishment completed in 2020, now providing a dual tenanted property wholly leased by national retailers Harris Markets and Amart Furniture. The asset is situated on a high profile 14,250m2 corner site on Young Street (Riverina Highway) in the heart of the Albury-Wodonga region.

Nick Willis, Senior Director of Retail Investments at JLL concluded “Investor sentiment for long lease assets has never been stronger, fueled by a positive interest rate environment and flight to quality.”

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