The Oatley Village Square shopping centre in Sydney’s south has been listed for sale amid strong investor demand for convenience-based retail assets. CBRE’s James Douglas, Joe Tynan and Michael Hedger have been appointed to steer the sale campaign for the 47-67 Mulgoa Road property on behalf of Bayley Property Group.
The fully leased 3,523m2 retail stratum is anchored by a strongly performing Coles supermarket and Liquorland outlet, representing 86% of the gross tenant income and 81% of the gross lettable area, alongside four specialty stores.
“Neighbourhood shopping centres are tightly held and in high demand, particularly in Sydney, given their resilient and defensive nature, relative to other investment opportunities,” Douglas said.
Douglas continued, “The Coles anchor tenancy will be a key buyer drawcard for Oatley Village Square given the supermarket’s exceptionally strong trading performing, security of tenure and near-term payment of percentage rental.”
The campaign closely follows the sale of another Coles-anchored centre in Sydney – the Entrada Shopping Centre at Parramatta – which transacted for $41.4 million after attracting strong investor interest.
The Coles/Liquorland lease at Oatley Village Square extends until 2027, with two further 10-year options.
Tynan noted, “Oatley Village Square is the dominant centre in the primary trade area, and the only Coles supermarket offering. Coles’ performance provides the opportunity for future rental growth, as do the specialty tenancies, which have strong in-built annual rental reviews.”
The centre sits also benefits from its location in the tightly held and affluent suburb of Oatley, a short distance from the Oatley train station.
Expressions of Interest close July 15, 2021.