Demand continues for Tasmanian shopping centres

Launceston, 06 April 2016 – The strength of Australia’s strong performing retail investment market is set to be tested, with the upcoming sale of a brand new neighbourhood shopping Centre in Mowbray, outside of the Launceston CBD.

CBRE’s Retail Investments team, led by Justin Dowers, Mark Wizel and Kevin Tong, have been appointed to sell the recently constructed Mowbray Plaza, a neighbourhood shopping centre, which is anchored by Target, Chemist Warehouse and three specialty shops.

The multi-frontage land holding is prominently positioned within the heart of the Mowbray retail shopping hub, approximately three kilometres north of the CBD, and surrounded by both Woolworths and Coles supermarkets, as well as access to over 350 car spaces.

Mr Dowers said the property represented an outstanding investment opportunity in Tasmania’s second largest city.

“Mowbray Plaza is positioned to capitalise on existing foot traffic from the neighbouring Woolworths and Coles supermarkets, whilst also benefiting from being a sub-regional shopping centre,” Mr Dowers explained.

“The property also offers significant tax depreciation benefits, which accompany the brand new nature of the asset.”

The upcoming sale of Mowbray Plaza follows a spur of recent retail investment sales in Launceston in the past six months including: Woolworths Launceston ($22,500,000 // 5.80% Yield), Woolworths Burnie ($18,100,000 // 6.80% Yield), Coles Launceston ($9,750,000 // 5.91% Yield) and Australia Post Launceston ($7,575,000//6.90% Yield).

“These transactions highlight the high level of investment Launceston is continuing to attract, specifically from interstate and offshore buyers,” Mr Dowers said.

“These properties all sold to private Victorian investors, which further highlights the current appetite to acquire secure retail assets interstate, given the general lack of supply currently in the Victorian market for investors.”

Mr Dowers also added that in 2016, Tasmania’s retail trade figures had increased at an annual rate of 4.29%, more than 36 basis points higher than the national average of 3.96%.