Industry News

Woolworths Spring Farm Shopping Centre sells for $34.75 million

Woolworths Spring Farm Shopping Centre sells

Colliers International has announced the sale of a modern neighbourhood shopping centre investment on behalf of its client Woolworths Group, the first NSW Neighbourhood Shopping Centre transaction executed in COVID-19 conditions. Woolworths Spring Farm Shopping Centre, located in Sydney’s thriving South West Sydney growth corridor, sold for $34.75 million to Primewest which represented a fully leased yield of 5.77%.

James Wilson and Alex James-Elliott of Colliers International, facilitated the sale of the 4,813m2 centre, anchored by a strong performing, full-line Woolworths Supermarket and BWS, with nine speciality stores and one kiosk, including non-discretionary and destination retailers including a medical centre and pharmacy.

“Investor appetite continues to focus on non-discretionary retail investment opportunities, anchored by major supermarket operators and ASX listed covenants,” said James Wilson, National Director, Retail Investment Services at Colliers International.

He continued, “Transaction results recorded during COVID-19 conditions haven’t deviated greatly in the small number of transactions executed since April, with ‘on market’ campaigns generating competitive bidding for a limited number of premium supermarkets and neighbourhood shopping centres. Colliers International have noted a growing number of private investors and unlisted funds targeting supermarket anchored, non-discretionary shopping centres. Growing purchaser interest contrasts with limited supply, leading continued market strength for supermarket anchored investment opportunities.”

Alex James-Elliott, Executive, Retail Investment Services, said “this growing interest is being driven by strong growth in the supermarket sector”.

The NSW Retail Investment Middle Markets year to date has recorded a decrease of 23% in transaction volume when compared to the corresponding period in 2019.

The five transactions reported, totalling $129,000,000 in value, include campaigns that were run in late 2019, and thus were not impacted by the current economic environment.

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