Goulburn Central SC Sells For $16.7 Million

A Sydney based private investor has paid $16.7 million for the Target-anchored Goulburn Central Shopping Centre in an off-market sale brokered by Savills.

According to Savills agents, headed by Steven Lerche, Andrew Palmer, Pat De Maria and Ben Stewart, the centre was sold fully leased with a WALE of 8.7 years and a net annual income of circa $1.47 million.

Savills agent Steven Lerche said the Goulburn centre had been an attractive proposition offering a strong local catchment backed by robust regional population and employment growth and a more attractive income yield than comparable metropolitan assets.

"The Goulburn region has seen significant employment growth over the past two years and growth of almost 1.9 per cent in the past 12 months - nearly double the latest national rate while the unemployment rate for the region remains at a very low 3.9 per cent.

"Further, job advertisements in the Southern Highlands and Snowy region have risen by over 30 per cent in the past 12 months, well above the 7.1 per cent gain seen nationally, so the area’s impressive performance appears set to continue for some time to come,’’ Mr Lerche said.

The modern, purpose-built, 5720 square metre complex comprises a Target discount department store and two specialty tenancies with on grade parking for 120 vehicles on a 9600 square metre site, with additional street parking for 50 vehicles directly fronting the property.

Completed in August 2011 the property -195 kilometres south-west of Sydney and 90 kilometres north-east of the Canberra CBD - has extensive frontages to Auburn and Bradley streets.

Mr Lerche said demand for retail property investments was at an historical high with 247 properties selling for approximately $8.6 billion nationally in the 12 months to September 2016, a 24 per cent rise on the five year, $6.9 billion, average.

The NSW market has been the standout with $2.8 billion worth of transactions accounting for a dominant 33 per cent of the total national market, according to Savills research.

"It’s been an extraordinary year for retail investments and all indicators would suggest that 2017 will be no different with Australia’s safe haven investment status potentially enhanced by the uncertainty in foreign markets particularly in the US with a new government, the UK with Brexit, and elections in France and Germany,’’ Mr Lerche said.

Mr Palmer said with a shortage of stock and a reluctance on the part of owners to sell, yields faced further compression in the New Year, although the political/economic uncertainty across the world could see investor mandates go either way.

The vendor was a private developer.