Colliers has completed the sale of Southgate Shopping Centre to a private investor for $33.4 million, achieving a core cap rate of 5.50 per cent.
The deal was concluded off-market on behalf of IFM Investors, ranking among the nation’s sharpest non-metro neighbourhood centre transactions last year.
Located in South Tamworth, the Coles-anchored centre occupies 4851sqm of gross leasable area on a 8737sqm site, complemented by strong tenant performance across essential services including pharmacy, liquor and Australia Post.
Its role as a “key daily needs destination” has since been reinforced, primarily attributable to rapid population growth and rising retail demand in one of inland NSW’s fastest-growing regional cities.
“This result underscores the strength of private and institutional investor appetite for daily-needs retail in catchments featuring strong demographics,” said James Wilson, head of Colliers retail middle markets, Australia.
“Coles Southgate Shopping Centre’s performance and positioning made it a highly sought-after asset,” he added, noting that achieving such a benchmark speaks to the scarcity of quality neighbourhood centres, which remain one of Australia’s most resilient retail formats.
Ben Wilkinson, manager of retail middle markets, NSW, also said, “Supermarket-anchored centres continue to outperform nationally. With migration and regional growth accelerating, we expect sustained demand for assets like Southgate that offer long-term income security and strong demographic fundamentals.”
Colliers earlier reported a $7.61 billion year-to-date retail transaction volume for the third quarter, up 45 per cent compared to the same period last year, driven by increasing shopper competition and limited new supply.
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