$45m price tag as ninth Geelong shopping centre hits the market

A ninth major shopping centre has hit the market in Geelong region in two years as grocery giant Woolworth cashed in on the sale of two local assets.

Newcomb Central, anchored by Woolworths and Aldi supermarkets, has hit the market with price expectations around $45 million.

The Bellarine Highway complex was bought by a Melbourne private family from Centro in 2011 for $26 million.

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CBRE Victorian retail investments team Mark Wizel, Justin Dowers and Kevin Tong have listed the 2.48ha shopping centre, which is fully leased after a recent turnover of tenants, and has an annual income of $2.66 million.

Agents have price expectations for Newcomb Central Shopping Centre around $45 million.

The shopping centre hosts the suburb’s public library and maternal and child health centre, a first-floor gymnasium, a medical centre and 23 specialty shops including Westpac and Bendigo bank branches and Priceline pharmacy, has 346 at grade car parking spaces with a 168m frontage to the Bellarine Highway.

The complex hits the market after the nearby Bellarine Village was sold in 2018 for $36.5 million.

Woolworths has offloaded its stand-alone supermarket complex at Lara and also sold the Bayview Central Shopping Centre at Curlewis is separate deals with private investors worth about $38 million combined.

The company retails long lease arrangements on the supermarkets.

The shopping centre has Woolworths and Aldi supermarkets.

Dowers says it was Geelong’s strong population growth that was driving the new investments in the region’s shopping centres.

Geelong is the nation’s fastest growing city, with ABS figures showing a 2.7% rise in population between 2017 and 2018 greater in percentage terms than Melbourne at 2.5%.

Geelong’s population grew more than 7000 in a year to more than 260,000 people, according to the ABS stats, with internal migration the biggest factor.

Dowers says Victorian-based investors have confidence in the Geelong growth story.

The main trade area population is forecast to grow to more than 100,000 by 2031.

“The Geelong growth story is real, this is driving the demand for retail services throughout the city,” he says.

“The mooted Geelong fast train will be a $10 billion investment from the Federal Government. which would present a huge opportunity in the future for Geelong.”

Outside of the Armstrong Creek Growth Area, Clifton Springs, Drysdale and Curlewis and Lara were the fastest-growth suburban areas in the Geelong region, with local population growth of nearly 4%.

While Newcomb’s growth rate is nowhere near that mark, the agents report the population in the main trade area is forecast to growth from 81,800 residents to 101,750 by 2031.

Expressions of interest in Newcomb Central Shopping Centre close June 27 at 5pm.

This article from the Geelong Advertiser originally appeared as “Geelong population growth behind splurge on city’s shopping centres”.