Darwin’s Coolalinga Central nears $95m sale

Gwelo Developments is selling Coolalinga Central.
Gwelo Developments is selling Coolalinga Central.

Funds manager M/Group is circling the Coolalinga Central shopping centre that Darwin-based developer Gwelo Developments put on the block in June for about $95 million.

The shopping centre anchored by Coles and Kmart spins off an estimated $7.17 million net annual income fully leased and could fit into M/Group’s stable of income-producing investments.

CBRE’s Mark Wizel, Justin Dowers and Simon Rooney are handling the sale of the near new Stuart Highway centre but did not comment, and nor did the parties.

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The enclosed centre benefits from limited competition and sits 30km southeast of the Darwin CBD.

The 20,034sqm enclosed subregional is anchored by a Coles supermarket (3990sqm) and Kmart (5629sqm) with five mini-majors including iFitness, Chemist Warehouse, Mad Harry’s and The Salvation Army. There are also 37 speciality stores, 10 kiosks, an ATM and nine pad sites including McDonald’s, Subway, Hungry Jack’s and KFC.

The majors, mini-majors and pad sites comprised 69 per cent of centre income, while together Coles and Kmart have a 12.69-year lease term by income and 10-year option periods.

The 77,100sqm site includes parking for 1240 vehicles with 776 undercover spaces, enhancing the centre’s wet season appeal.

The additional 16,500sqm of vacant land allocated for the next stage of the shopping centre development provides a further drawcard.

The centre, built in 2017, also offers significant depreciation benefits, with minimal capital expenditure requirements.

Perth-based M/Group also owns the Pialba Place Shopping Centre in Hervey Bay that it acquired from Vinta Group for $36 million. M/Group also owns Wodonga Plaza in Victoria and Chester Pass Mall in Albany, Western Australia. Buying in Darwin would be a step up from its traditional target of $20 million-$50 million.

This article originally appeared on www.theaustralian.com.au/property.