Cosgrove Group has acquired a large format retail centre from HomeCo Daily Needs REIT in Warners Bay NSW for $56.5m via Colliers. The transaction is the second between the parties following the sale of a 23,400sqm large format retail centre in Midland WA last year for $74.75m.

The Warners Bay acquisitions swiftly follows Cosgrove Group’s acquisition of The Esplanade Hotel in Fremantle, Perth from Centuria for $116.5m in July this year.

The Warners Bay property occupies a high-exposure location 20-minutes/14kms from Newcastle CBD and is located in a fast-growing population corridor. The 12,336sqm centre is entirely occupied by ASX-listed and/or national tenants and has a WALE of 4.6-years. 

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.”      

Tenants include well-known brands such The Good Guys, Officeworks, Supercheap Auto and Pillow Talk, among other household names. 

Banjo Bond, director of Cosgrove Group said “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.” 

James Wilson, Head of Colliers Retail Middle Markets 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 have transacted over 70% of LFR Centres nationally in 2024 YTD by engaging a growing number of sophisticated investor mandates targeting the Large Format Retail Sector. Buyer interest stems from centres occupying large strategically located sites within a sector forecasting positive rental reversion.”

Rob Thomas added "as evidenced by our recent transactions we are well supported by our investor base and are keen to capitalise on the current opportunities in the marketplace. We also are encouraged by a growing number of savvy and experienced investors wishing to participate in our countercyclical investment plays”.

The sale was brokered by James Wilson, Head of Retail Middle Markets at Colliers.

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