Dubbo shopping centre sold for $20.17 million
March 20, 2020
Sentinel Property Group has sold a high performing regional neighbourhood shopping centre with expansion potential (STCA) at Dubbo in central west NSW for $20.17 million.
The Woolworths and Reading Cinemas-anchored Riverdale Shopping Centre in Macquarie Street, Dubbo, was sold to a private investor on a yield of 7.26 per cent.
Riverdale Shopping Centre was the first acquisition for the open-ended Sentinel Countrywide Retail Trust when it was purchased from Charter Hall in October 2014, for $14 million.
At a glance:
- Dubbo’s Riverdale Shopping Centre has been sold to a private investor for $20.17 million on a yield of 7.26 per cent.
- The centre offers a total lettable area of 6,156 square metres, including 17 specialty outlets.
- The sale was negotiated Savills Australia National Director for Retail Investments, Steven Lerche.
Savills Australia National Director for Retail Investments, Steven Lerche, who negotiated the Riverdale sale, said the transaction should provide the necessary confidence there is a market for regionally located neighbourhood shopping centre investments with strong underlying convenience retail characteristics.
“Despite the challenging retail environment, assets are still transacting, particularly neighbourhood centres, largely due to their affordability and exposure to non-discretionary retail. Neighbourhood centres and freestanding investments remain the preferred sub-class, with a strong non-discretionary presence,” he said.
“The retail sector has taken a lot of criticism due to the headwinds of online retailing and shrinking retailer confidence.
“However, online retailing clouding investors’ views of the longevity of the shopping centre is being skewed by negative publicity and complacency in the marketplace.”
Situated along Macquarie Street with parking for 299 vehicles, Riverdale Shopping Centre offers a total lettable area of 6,156 square metres, including 17 specialty outlets.
Sentinel Managing Director Warren Ebert said the Dubbo shopping centre was almost fully leased, with Woolworths last year taking up a five year option.
“This has been an excellent asset for Sentinel with Dubbo being a key transport and logistics hub servicing a huge area of NSW with a retail catchment of about 200,000 people plus visitors,” he said.
“The decision to sell was based on Sentinel’s strategy of buying at an opportune time and then selling based on our view of the market.
“Riverdale Shopping Centre is in the main street of Dubbo and as well as Woolworths it has the only cinema within 100km, making it an entertainment destination not only within the main trade area but also the broader region.”