Deepwater Plaza in Woy Woy has been sold to a private investor for $111 million, with real estate firm CBRE saying interest in convenience-focused sub-regional centres is continuing to increase.
CBRE head of retail capital markets Simon Rooney negotiated the off-market sale of the Central Coast property on a core capitalisation rate of 6.50%.
The Deepwater deal was undertaken on behalf of a Dexus-managed fund and follows on from disposals of Shepparton Marketplace ($88.1 million) and Beenleigh Marketplace ($85 million) in 2022, also negotiated off-market by CBRE.
Deepwater Plaza is located 84km north of Sydney and holds a space of 17,417sqm. It is anchored by discount department store Kmart and a Coles supermarket, with a combined moving annual turnover of $84.1m.
Fashion tenants at the shopping complex include Best & Less, Just Jeans, Lowes, Millers and Ozmosis.
Its national and chain retailers represent approximately 90% of the centre’s tenanted GLA and 85% of the gross rental income.
“This transaction demonstrates the shift in investor focus and renewed demand for sub-regional centres, specifically for assets with a clear focus on non-discretionary spending and genuine value-add opportunities,” Rooney said, noting that over $700 million had been transacted in this sub-sector year to date.
“Investors were attracted by Deepwater Plaza’s robust major tenant and overall sales performance, coupled with the centre’s strong specialty productivity of $10,007/sqm and sustainable occupancy cost of 11.5%.”
The centre is positioned on a strategic 42,910sqm freehold site adjoining Woy Woy railway station.