Terrace Central shopping centre in the NSW Hunter region has been sold to Argus Property Partners for $44.1 million.
The 6978sqm centre, listed for sale earlier this year by CBRE’s James Douglas, James Sherley and Savills’ Steve Lerch, sold at a price reflecting a passing yield of 6.37 per cent.
“Panthera had completed several strategic initiatives at the centre within their ownership, with further value-add opportunities on offer for Argus to drive asset performance and returns,” said Douglas.
Located at 30 Sturgeon Street, Raymond Terrace, the centre is anchored by major retailers including Woolworths supermarket, The Reject Shop, Australia Post, and BWS liquor. The area is projected to receive a combined government and private investment of $2.4 billion.
CBRE’s Sherley said there is a consistent demand for shopping centres within the NSW region. The solid result for Terrace Central reflects the centre’s strong supermarket performance. Woolworths and BWS have 10-year leases expiring in 2032.
The surrounding catchment area is supported by key greenfield residential developments in the main trade area, including the master-planned Kings Hill community, the M1 Pacific Highway extension, and renovations at Newcastle Airport.
“Terrace Central offers strong growth prospects with population in the main trade area forecast to increase by 1.7 per cent pa and above benchmark supermarket performance that provides compelling rental growth potential.”
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