SCA Property Group has agreed to acquire Marketown in Newcastle, NSW from AMP Capital Investors Limited for $150.5 million, an initial passing yield of 5.6% and an implied fully let yield of 6.1%.
The 26,500m2 sub-regional centre is located in a high growth area adjacent to Newscastle’s CBD, close to the newly opened lightrail network, a major university and TAFE.
The deal was brokered by JLL’s Nick Willis and Sam Hatcher, along with Stonebridge.
“We are experiencing a resurgence in investor interest towards the sub-regional sub-sector. Those sub-regionals that are land rich and convenience-based are attracting diversified investor interest,” Willis said.
The trade area of more than 80,000 now reflects the ‘new’ Newcastle with a growing number of young professionals residing in the area for affordability, the accessibility and the lifestyle of the region.
Marketown consists of two centres, East and West. The East centre is anchored by Woolworths, Big W and Dan Murphy’s and has 28 specialty stores. The West centre is anchored by Coles and Officeworks and also has 28 specialty stores.
SCA Property Group growing portfolio of regional assets also includes the acquisition of MarketPlace Raymond Terrace for $87.5 million this month from Canberra-based developer Goodwin and Kenyon. The group also purchase Mount Isa Village shopping centre for $44.2 million this year.
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