The unlisted ISPT Retail Australia Property Trust (IRAPT) is preparing to sell a high-performing NSW shopping centre in the Blue Mountains amid continued demand for convenience-oriented retail investment opportunities.
CBRE’s James Douglas and James Sherley with JLL’s Sam Hatcher, David Mahood and Sebastian Fahey have been appointed to manage the Expressions of Interest campaign for Katoomba Village – a food, service and convenience-oriented neighbourhood shopping centre on the western fringe of the Sydney metropolitan area.
The 5,400m2 centre is anchored by a strong performing Coles supermarket, which accounts for over 86% of the lettable area on a long-term lease until 2033, with options until 2073.
“Katoomba Village benefits from significant local trade, with the Coles supermarket performing above the Urbis Benchmark’s average for a single supermarket anchored shopping centre. This strong performance is further complemented by a secure lease arrangement that offers incoming purchasers protection from rising holding costs and offers potential rental growth upside in the short term,” said Douglas.
Katoomba Village includes a full-line, recently refurbished Coles supermarket, five specialty shops, two kiosks, and a Liquorland, along with a pharmacy and various food and service retailers. The centre is serviced by 352 car spaces.
The sale campaign has been launched following the February 25bps cut to the cash rate, which is expected to be a positive for the retail sector from a sales and financing perspective.
David Mahood from JLL said, “Katoomba Village’s prime location in Sydney’s premier natural tourist destination capitalises on the Blue Mountains’ 4.3 million annual visitors, who inject $1.2 billion in tourism spending.”
Combined with its strong performance and significant upside potential through strategic re-leasing and remixing opportunities, the asset offers a rare investment offering. We expect this combination of stable returns and value-add potential to drive keen interest from investors both locally and abroad.”
Katoomba Village has a vast trade area servicing approximately 37,000 people, with retail spending higher than benchmarks by +11.4%, which positions the centre for future sales and income growth.
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