The Mercato Shopping centre and neighbouring old Woolworths site on Jonson St in Byron Bay have sold
Mercato on Byron Pty Ltd had offered both its near-new shopping centre and an adjacent property, formerly home to Byron’s old Woolworths store, for sale at the same time.
Property
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A major segment of property in central Byron Bay has changed hands.
The Mercato on Byron Bay shopping centre and an adjoining site, which encompass 98-116 Jonson Street, have sold as a package to a family fund of investors.
While the sellers have referred to an “undisclosed price” there have been reports the property sold for $200 million.
The 1.1 hectare property, which encompasses the shopping centre and the old, currently vacant Woolworths site next door, hit the market earlier in the year.
The family fund which purchased the property was headed by the Mustaca and Pelligra Families.
United Cinemas owner Sam Mustaca has told News Corp he may look to involve Hollywood star Mark Wahlberg in the site, through his Wahlburger restaurant chain.
It was sold in an international campaign which was handled by Nick Willis, Jacob Swan and Sam Hatcher from JLL and wound up in March.
The shopping centre was completed in 2019 and Mercato had proposed a $34 million, 146-room hotel on the old Woolworths site, but this was rejected by the Northern Regional Planning Panel last September.
The land was marketed with the potential for buyers to purchase the Mercato site, the neighbouring site or both together and several parties placed bids over a number of rounds.
“The demand for non-discretionary based retail assets with a low risk profile, underpinned by major national retailers, has been a major global trend since the onset of the pandemic,” Mr Willis said.
“These types of defensive assets continue to attract private and institutional capital sources given their resilience to external shocks.”
Mark Harrison was the managing director of Wingate Property, which sold the site in a joint venture with Azzura.
“The continued expansion of Byron Bay as one of Australia’s most desirable destinations has been well-covered,” Mr Harrison said.
“Wingate partnered with Azzura six years ago to help bring this development to life, as the first commercial development of its type to be approved in Byron Bay.”
“Mercato is now Byron’s largest shopping centre.
“Both the centre and adjoining development site offer strong future growth and development potential and were marketed as a once-in-a-generation opportunity.
“The result is a very positive one for the joint venture, and for Wingate’s co-investors and recognises the strength of both the local market and the asset.”
Jason Meares of Option Group and Chakyl Camal of Pantera Group are managers of the family fund.
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