Coles offers a buyer a lucrative boost in rental income
A Top End shopping centre generating more than $3.6 million a year has hit the market, offering investors a chance to cash in on a booming Coles supermarket on the verge of a major revenue milestone.
Anchored by a high-performing Coles, the 2.82-hectare freehold retail hub at 15 Temple Tce, Palmerston is listed via an Expressions of Interest campaign with Stonebridge Property Group.
The Oasis Shopping Village has a 97.3 per cent occupancy rate and generates an estimated fully leased net operating income of $3.65m per annum.
But the ultimate jackpot for buyers is the Coles cash cow as the centre’s anchor tenant.
According to Stonebridge, the Palmerston Coles has recorded a massive 17 per cent growth in sales over the past 24 months.
An aerial view of the shopping centre for sale in Palmerston City, NT
The supermarket’s sales are now just 1 per cent away from triggering “percentage-rent activation”. Under commercial lease terms, crossing this threshold means a boost in income for the landlord, who will then take a percentage cut of the supermarket’s turnover on top of the base rent.
Stonebridge Property Group agents Philip Gartland, Carl Molony, and Justin Dowers are managing the sale.
According to the agency, Oasis Shopping Village offers a “potent combination of secure income, proven trading performance and compelling long-term growth fundamentals” in a tightly held market.
The centre’s specialty tenants are up for annual rent reviews
MORE NEWS
Airport hangars hit the market
$259m: Reject Shop’s next move
“The property presents a rare chance to secure an asset offering direct exposure to the accelerating Darwin investment story,” the listing states.
“This includes the region’s rapidly diversifying economic base such as renewables, critical minerals, defence, agribusiness, tourism and LNG.”
The listing also highlights the NT’s unique property tax landscape as the only Australian jurisdiction with no land tax – “a significant advantage that enhances net yields and long-term income retention”.
The centre has a gross lettable area of 8,294 sqm with 422 car spaces, while its specialty tenants are tied to fixed 3 to 5 per cent annual rent reviews.
It services a local area with strong population growth projected through to 2046, with household incomes 15 per cent above the national average.
Expressions of Interest close at 4pm on Thursday, March 26.
NT is the only Australian jurisdiction with no land tax