Warrnambool regional mall Gateway Plaza up for sale

(Source: Supplied)

Warrnambool’s sub-regional shopping centre Gateway Plaza has been listed on the market.

The centre sits 250km west of Melbourne’s CBD positioned on the Princess Highway with the next closest competing centre 165km away.

The mall has 17,526sqm of gross lettable area and stands on a 6.2ha site with 926 car spaces. Just 28 per cent of the site developed.

Colliers, acting as agent, expects the property to fetch in excess of $70 million.

Anchored by two supermarkets – Coles and Aldi – and discount department store Kmart, the centre also has 31 specialty retailers and other mini-major chain tenants, including Chemist Warehouse, The Reject Shop and Best & Less.

Lachlan MacGillivray, Colliers’ MD for Asia Pacific (Retail Capital Markets), says investors are continuing to focus on “quality and dominance” when pursuing sub-regional centres across Australia.

“There has been heightened investor activity for sub-regional centres particularly in regional locations, with FY22 experiencing over $1.4 billion in non-metro sub-regional sales nationally, more than double the previous financial year’s $675 million.”

Tim McIntosh, Colliers’ director for retail middle markets Victoria, said the centre will appeal to private, syndicate and institutional investors, due to its strategic location in one of Victoria’s biggest regional cities.

The centre generates an annual net income of $4.34 million and enjoys a stable occupancy rate of 99.4 per cent.

Adjoining the centre, a 5.6ha undeveloped commercial 1 zone site providing multiple development opportunities for mixed-use retail or commercial, will be sold separately.

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