Over $40 million in Large Format Retail centres was transacted in regional NSW locations in late 2022, with major acquisitions occurring in both Dubbo and Griffith, highlighting the resilience of the retail sub sector.

Colliers’ Head of Retail Middle Markets Australia James Wilson and Manager Ben Wilkinson secured the $13.277m deal of Dubbo Homemaker Centre, on behalf of Stevens Group.

The newly built centre on the corner of the Mitchell Highway was purchased by MPG Funds Management and was sold at a fully leased yield of 5.75 per cent, as well as a GLA rate of $3,154 per sqm.

With 4,209sqm of gross lettable space, the centre is 100 per cent fully leased by high profile national retailers including Total Tools, Fantastic Furniture and OMF.

“Colliers recorded over $1.5 billion worth of Large Format Retail centre sales in 2022 through a combination of private and institutional capital targeting the asset class. This was due to the sector largely offering strategic land holdings in high growth locations with fixed annual rental reviews,” James Wilson, Colliers Head of Retail Middle Markets Australia said. “Dubbo Homemaker Centre’s competitive bidding reflected the quality of the Stevens Group development in a market featuring limited NSW investment supply in late 2022.”

“We are delighted to add Dubbo Homemaker Centre to our quality portfolio of properties held within the MPG Bulky Goods Retail Trust. Compared to other property asset classes, we consider that the large format retail sector offers good value, and we are actively seeking to grow the Trust with the addition of new large format properties in the range of $10 million to $50 million,” Brett Gorman, Director of MPG Funds Management said.

“We are very proud of the retail communities we develop at Stevens Group, and this Dubbo Homemaker Centre is the final stage of the master planned precinct in Dubbo featuring Carls Jnr, Mobil, a Childcare Centre and Large Format Retail. Working with large investment groups such as MPG is recognition of the high standard of work consistently delivered by Stevens Group and our strong relationships with national and international retailers. We have completed over 200 projects over the last 40 years and have a large pipeline of projects underway throughout NSW,” Jason Capuano of Stevens Group said.

Another substantial Large Format Retail sale occurred in late 2022 as Griffith Hometown sold to Argus Property Partners in a $28.33 million deal. This transaction was negotiated by Colliers in conjunction with Savills.

Griffith Hometown is a high-performing Large Format Retail Centre comprising three freestanding buildings across 19,070 square metres of lettable area, anchored by an established Bunnings Warehouse. Included in the offering is vacant land, presenting an excellent opportunity to increase lettable area (STCA).

The centre is located 2 kilometres south-east of the Griffith CBD on a prominent 6.4-hectare corner site, attributing two extensive frontages to the main arterial roads Kidman Way and Watkins Avenue.

To request a sales analysis please contact the selling agents Colliers’ Head of Retail Middle Markets Australia James Wilson and Manager Ben Wilkinson via the below contact details. 

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