Savills sell Katherine, NT's only shopping centre for $28.9 million
The only shopping centre in the town of Katherine, in the Northern Territory, has transacted to a private Melbourne investor for $28.9 million.
Achieving a core cap rate of 7.43%, Katherine Central Shopping Centre was sold by Ben Parkinson and Rick Silberman of Savills.
Katherine Central is anchored by a Woolworths supermarket and Target Country, with a tenancy mix that includes BWS, Rockmans, Smokemart, Amcal, and Brumby’s.
The off-market deal was negotiated on behalf of Charter Hall.
“The Centre enjoys an excellent market share within an expansive 500 kilometre main trade area in the Northern Territory,” Mr. Parkinson said. “Aside from the Woolworths in Katherine, the closest full line supermarket is in Darwin, 316 kilometres away.”
The 7,159 sqm Katherine Centre also immediately adjoins a retail and commercial development known as the Southgate Centre and the Katherine Hotel.
Major industries other than tourism include the RAAF Tindal Air Base along with mining and grazing. The RAAF Tindal Base is approximately 15 kilometres southeast of Katherine and is home to several flight squadrons. This local market and long term employment base underpins the success of Katherine Central.
“The total retail spending market generated by the overall trade area population is estimated to be around $212 million,” said Rick Silberman, Director of Retail Investments at Savills.
“This amount is expected to increase on average by 4.2% per year, reaching around $346 million for the overall trade area, including $268 million in the Primary Sector and immediately surrounding Katherine,” he concluded.
