Darwin’s Lay family purchases Fannie Bay shopping centre

A landmark NT shopping centre has changed hands for a multimillion-dollar figure. Read who bought it and why.

A major Top End property deal has seen a landmark inner-suburban shopping centre change hands for the first time in decades.

The famous Fannie Bay shopping centre, home to The Cool Spot cafe, Outback Bakery, Super Pizza and Fannie Bay supermarket, has been snapped up by Darwin’s Lay family.

Marketing agent Nigel Sharp from NTC Property battled high interest rates and generally unfavourable market conditions to secure the sale for a cool $17.8m.

“I’ve been in Darwin off-and-on for 14 years and it’s the most exciting sale I’ve been involved in,” Mr Sharp said.

“It’s an iconic property known by most Territorians and a very widely-recognised Darwin site.”

Fannie Bay shopping centre.

The centre has been owned for more than four decades by long-time Territory investor Terry Finocchiaro and is another significant asset divestment for the local identity who sold Officeworks in Stuart Park and the Winnellie Central complex in late 2021.

The Fannie Bay shops was the location of Finocchiaro’s bakery and where Terry Finocchiaro and his family began their Territory business journey in the 1960s.

“Terry Finocchiaro’s family had the bakery originally and it was one of Darwin’s first bakeries in the 1960s,” Mr Sharp said.

“The centre is a multi-generational asset passed down over a long time and the vendor has different investment interests and priorities at the moment.”

Snapshot: Fannie Bay shopping centre in the early 2000s.

NTC ran a national campaign beginning with an expressions of interest process that commenced in April but Mr Sharp was confident a local buyer would eventually be identified.

“A lot of investors don’t understand Darwin or know how iconic this property is,” he said.

“I was always relatively confident it would be a local purchaser for what is obviously an iconic property.

“Look at the fundamentals of this investment and you’ll see they’re very strong. Long tenancies and low vacancy rates amount to a very sound investment and prospective buyers will never get anything else commercial in that area.

Real estate agent Nigel Sharp is excited by one of his most exciting sales. Picture: Glenn Campbell

“It might not be the largest sale I’ve done but it was the most enjoyable and exciting and I am very grateful to have been involved in the process.”

Chris Lay from LKK Holdings said it would be “business as usual” for retailers at the shopping centre.

“It’s another sign of our commitment to the Northern Territory,” he said.

With the Fannie Bay shopping centre sale concluded, Mr Sharp is expecting subdued activity in the NT’s commercial property sector for the remainder of the year.

“There’s not enough demand from private buyers and construction costs aren’t helping the sector,” he said.

“It would need a big commitment from the NT government to get buildings out of the ground.”