The Elermore shopping centre has hit the market with an anticipated price tag of between $18 and $20 million.
The centre itself accommodates an IGA supermarket and seventeen local and national specialty retailers.
Listed by Savills Australia, agent Steven Lerche said there was enormous scope for the redevelopment of the site, which spans 23,882 square metres. Much of the land is undeveloped and a development application is already before Newcastle Council for a new service station on Croudace Road.
“The zoning allows for mixed use, so that could mean retail on the ground floor and some residential above,” Mr Lerche said.
“And that residential can be anything from ordinary units to aged care.”
The centre comes with car parking for 235 vehicles and draws in an estimated net income of circa $1.44 million.
There is an estimated population of nearly 20,500 people within the centre’s main trade area and Elermore Vale is a population growth spot in the city. Mr Lerche said the suburb was also rapidly gentrifying.
“You’re seeing some of those older homes on large blocks being knocked down and town houses being built, so the population will increase over time,” he said.
Expressions of interest will close at 3pm on May 3.
CENTRES SNAPPED UP AT AUCTION
Investors from out of area have outbid Newcastle buyers to take ownership of two childcare centres that went under the hammer last week.
As reported by Domain, the centres at Carrington and Salt Ash were put to the market with lease arrangements in place with Go Kindy. Colliers International and Burgess Rawson negotiated the transaction.
The centre at Carrington sold for $3.5 million to a Sydney couple, representing a yield of 5.9 per cent. The Salt Ash centre went for $3.401 million to an investor from Melbourne, representing a 7.06 per cent yield.
On both occasions the under bidder was a local.
“Investors from Sydney and Melbourne are looking to strong regional markets at the moment and I don’t think there’s a stronger regional market than Newcastle,” Colliers director Matt Kearney said.