Private investor Bamm Group has sold its Elermore Shopping Centre in Elermore Vale, outside Newcastle for $18 million.
Investment platform Tamim CCI Property snapped up the neighbourhood centre on a 6.8 per cent passing net yield.
Located at 133-137 Croudace Road, the single-level, enclosed and strong performing centre comprises a large Ritchies SUPA IGA supermarket and 17 non-discretionary specialty tenants. Fully leased net income was about $1.44 million.
The 4048 square metre shopping centre on a 23,882 sq m site included additional land ready for development and car parking for 235 vehicles.
Savills Australia’s national director for retail investments Steven Lerche and colleagues Andrew Palmer and Ben Nastasi sold the property on behalf of Bamm Group.
Bamm Group purchased the property in 2011 for $8.3 million. At the time the property was anchored by BiLo on a short lease.
“We are seeing a lot of investor interest come from the Sydney investment market and interstate markets such as Melbourne and Brisbane due to the significant growth prospects of Newcastle.
“Newcastle is seeing a surge in investment activity, largely stimulated by the $6.55 billion state government investment mandate, which has brought to light the new light rail system on Hunter Street, the new transport interchange at Wickham and construction of the Newcastle City University Campus.”
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