A private investor has paid $18.05 million to secure a dominant Neighbourhood Shopping Centre in the Upper Hunter Region of NSW. Anchored by a high-performing Coles full-line supermarket that is currently paying turnover rent, Scone Village boasts a strong predominantly non-discretionary tenancy mix. 

The Non-Metro Neighbourhood Shopping Centre offers 4,111sqm of GLA across a site area of 8,879sqm, featuring low site coverage and significant scope for expansion. The tenancy mix includes national tenants Coles, Icebox Liquor, Kaisercraft, Regional Australia Bank and six additional specialties.

The Colliers Retail Middle Markets team of James Wilson and Ben Wilkinson sold the Centre. 

“Sold at a passing yield of 6.36 per cent, the team achieved a very strong result via a highly competitive on-market campaign that attracted 215 enquiries, engaging both existing and first-time investors,” Mr Wilson said.

“The Centre was acquired by a first time shopping centre investor, reflective of a key theme across 2024 campaigns. Colliers Retail Middle Markets Team are engaging a growing number of emerging mandates bidding with increased confidence based on where Australia is placed in the debt cycle”

“Scone Village attracted interest from a broad breadth of buyer groups, including private investors, syndicators, unlisted funds and offshore capital, highlighting investor appetite for strong non-metro Neighbourhood Centres,” Mr Wilkinson added. 

Located 25 kilometres north of Muswellbrook and 205 kilometres from the Sydney CBD, 8,400 cars pass Scone on a daily basis via the New England Highway, with MTA retail spending projected to increase to $406.1 million by 2041. 

The Centre was acquired by a local syndicate in 2015, undergoing a number of improvements, which included upgrades to the convenient on-grade car park and tenancy mix. These improvements, alongside council upgrades to Kelly Street, the main thoroughfare through Scone, assisted Coles to become the largest and most dominant supermarket within its Main Trade Area.

The Centre benefits from significant street frontage along Kelly Street, a key arterial road running through Scone, connecting the town to the New England Highway. 

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