SCA makes it mark in Darwin with Woolworths mall deal
ASX-listed mall landlord SCA Property Group has made its first acquisition in the Northern Territory after buying the Bakewell Shopping Centre near Darwin from Woolworths for $33 million.
The 6407sq m neighbourhood shopping centre in Palmerston is anchored by a full-line Woolworths supermarket and BWS liquor store, plus 10 specialty tenants.
It sold on an initial passing yield of 6.8 per cent, with the deal providing further evidence of the appetite of institutional investors for smaller neighbourhood centres anchored by a Woolworths or Coles supermarket.
SCA Property Group chief executive officer Anthony Mellowes told The Australian Financial Review its latest acquisition was a good local convenience shopping centre right in the middle of the Palmerston catchment area.
“All roads lead to it,” Mr Mellowes said. “It’s a very strong performing Woolworths and Darwin is a very good and solid city.”
The Bakewell Shopping Centre was the last asset to sell out of a portfolio of four properties Woolworths took to market in February to take advantage of strong investor demand for convenience-based retail property.
Total sales of $127 million were achieved – close to the $130 million the portfolio was expected to sell for – with all four properties anchored by Woolworths supermarkets on long leases.
Woolworth’s Keysborough South Shopping Centre in Melbourne’s south-east sold to a local private investor for $33.13 million on a yield of 5.4 per cent.
High-profile sports doctor Peter Brukner bought the Woolworths Wadalba site on the NSW Central Coast for $26.15 million on a 5.7 per cent yield, while the Spring Farm Shopping Centre near Campbelltown, about 60 kilometres south-west of Sydney, sold to ASX-listed fund manager Primewest for $34.75 million on a 5.78 per cent.
Jacob Swan, Nick Willis and Sam Hatcher from JLL negotiated the sale of the Bakewell Shopping Centre on behalf of Fabcot, the property development arm of Woolworths.
“The sale of Woolworths Bakewell further reinforces the strong demand we continue to experience for dominant, supermarket-anchored assets,” Mr Swan said.
“Despite the geographical challenges presented by the COVID-19 enforced restrictions from a travel and inspection perspective, we fielded strong enquiry throughout the campaign from all of the active buyer groups in the market across Australia.
“The exceptional strength of performance of the Woolworths supermarket, further enhanced by the strong essential services focus of the small number of specialty shops, underpinned investor demand for the centre,” Mr Swan said.
