Katherine's only shopping centre has changed hands for $28.9 million, achieving a core cap rate of 7.43 per cent.

 Anchored by a Woolworths supermarket and Target Country, Katherine Central features diverse tenancy mix including BWS, Rockmans, Smokemart, Amcal, and Brumby’s.  

The off-market deal was negotiated by Ben Parkinson and Rick Silberman of Savills on behalf of Charter Hall.

At a glance:

• Katherine Central Shopping Centre has been sold in an off-market deal for $28.9 million, achieving a core cap rate of 7.43 per cent.
• The deal was negotiated by  Ben Parkinson and Rick Silberman of Savills on behalf of Charter Hall.
• Katherine Central features diverse tenancy mix including BWS, Rockmans, Smokemart, Amcal, and Brumby’s.

Mr Parkinson said the sale demonstrated that private investor demand had been strong, despite the geographical location of the shopping centre.

"The investment fundamentals of Katherine Central are a testament to the significant interest the asset generated," he said.

"With the Woolworths generating upper quartile turnover, the right amount of specialty shops and minimal competition, it’s no wonder the purchaser saw value in the asset.”

“As Katherine’s only shopping centre, the property plays a vital role in supplying residents in surrounding rural areas with crucial access to retail goods."

Situated near attractions such as Katherine Gorge and Nitmiluk National Park, the 7,159 square metre Katherine Centre also immediately adjoins a retail and commercial development known as the Southgate Centre and the Katherine Hotel. 

Major industries other than tourism include the RAAF Tindal Air Base along with mining and grazing. 

The RAAF Tindal Base is approximately 15 kilometres southeast of Katherine and is home to several flight squadrons.

Mr Silberman said the local market and long-term employment base underpinned the success of Katherine Central.

“The total retail spending market generated by the overall trade area population is estimated to be around $212 million,” he said. 

“This amount is expected to increase on average by 4.2 per cent per year, reaching around $346 million for the overall trade area, including $268 million in the Primary Sector and immediately surrounding Katherine.” 

“Proposed significant upgrades should provide further economic benefits to Katherine and local businesses.

"The sale is a significant economic win not only for Katherine, but for much of the Northern Territory, and investment in Katherine shows no signs of slowing down.” 

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