AFTER what has been described as a "highly competitive" sales process, a landmark retail precinct in Bathurst has sold for $31.5 million.
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HomeCentre Bathurst, which is located in Pat O'Leary Drive and is the home of stores such as Harvey Norman and Spotlight, was sold off-market to a private consortium represented by Precept Property Partners and Stabilprop Investments.
While little has been said about the future of the complex, Precept director Grant Traub indicated that there are plans to enhance its value.
"The acquisition represents our first step into the retail sector," he said.
"It's a well-managed asset, which has the opportunity for further value enhancement through active management and strategic leasing to drive returns."
Sydney-based property fund manager Argus Property Partners, working in collaboration with development and investment firm Kaipara Property Group, sold the property.
The off-market sale was exclusively managed by James Douglas of CBRE, a global commercial real estate services and investment company.
Mr Douglas said HomeCentre Bathurst offered strong underlying investment fundamentals and opportunities for growth.
"The sale process was highly competitive, with investors looking through recent market headwinds to an improving outlook for both retail sales and the cost of finance," he said.
The transaction is the second major retail deal to be completed in Bathurst in the past 12 months, following the $17.5 million acquisition of the Bathurst Chase shopping centre by Mintus.
That sale was also handled by CBRE.
Mr Douglas said HomeCentre Bathurst was one of only a handful of recent large format retail transactions, with just seven centres sold nationally in 2023 for a total of $368 million.
Good time to buy
The sale of HomeCentre Bathurst comes at a time when the complex is thriving, with its suite of businesses including big national brands, such as Harvey Norman and Amart.
It hasn't always been that way, though.
The complex took a big hit in 2016 when all Masters Home Improvement stores across the country ceased trading after Woolworths Limited agreed to three transactions to sell its home improvement business.
The Kelso Masters store, which cost upwards of $25 million to build, had only been operational for two and a half years.
The closure meant the loss of around 100 jobs, and the enormous warehouse Masters occupied remained vacant for almost four years after that.
Many of the other shops in the precinct were also vacant, with the difficult task of drawing people in left to the remaining signature stores, Spotlight and PetStock.
The precinct seemed to get a new lease on life, though, when Harvey Norman relocated to the former Masters premises in mid 2020.
Amart Furniture, Eureka Street Furniture, Cheap as Chips and Jaycar have all opened there in the years since, and a new business, World Gym, will open there in June, 2024.