Cosgrove Group has acquired a large format retail centre from HomeCo Daily Needs REIT in Warners Bay NSW for $56.5 million via Colliers. The transaction is the second between the parties following the sale of a 23,400 square metre large format retail centre in Midland, Western Australia last year for $74.75 million.
The Warners Bay acquisition follows Cosgrove Group’s acquisition of The Esplanade Hotel in Fremantle, Perth from Centuria for $116.5 million in July this year.
The Warners Bay property occupies a high-exposure location just 14km from Newcastle CBD in a fast-growing population corridor. The 12,336 square metre centre is entirely occupied by ASX-listed and/or national tenants and has a WALE of 4.6 years.
Tenants include well-known brands such The Good Guys, Officeworks, Supercheap Auto and Pillow Talk, among other household names.
Cosgrove Group director, Rob Thomas said, “In addition to the greenfield house and land growth in the area, the NSW government has recently announced plans for a further 20,000 medium-density homes around three train-stations all within 10-minute drive of the property. The centre is well-positioned to capitalise on this population growth with growing retail trade expected.”
Cosgrove Group director, Banjo Bond added, “This is an established and well trading centre on a large landholding fronting major road infrastructure. It’s becoming increasingly difficult to find land large enough to develop LFR centres with any scale, which we believe will make this asset more valuable in the future.”
Colliers head of retail middle markets, James Wilson said, “HomeCo Warners Bay is the second largest large format retail centre to transact nationally in 2024, sitting below The Bayview Centre in Warrawong.
“Colliers has transacted over 70% of LFR centres nationally in 2024 YTD by engaging a growing number of sophisticated investor mandates targeting the sector. Buyer interest stems from centres occupying large strategically located sites within a sector forecasting positive rental reversion.”