Coolalinga Central mall sells for $80m in subregional centre rush

The heat in the market for subregional shopping centres has been confirmed with a private buyer swooping on Coolalinga Central in Darwin for about $80m.

Coolalinga Central sits 30km south east of the Darwin CBD and has high-profile exposure to passing highway traffic of 17,000 vehicles per day.

The heat in the market for subregional shopping centres has been confirmed with a private buyer swooping on Coolalinga Central in Darwin for about $80m.

A major eastern seaboard group has quietly struck the deal to buy the centre from receivers appointed by finance house Wingate, as these assets continue to fly out the door.

The deal shows that demand remains strong for this size of ­asset even as larger malls are yet to gain traction with buyers, although major city assets, like the Myer Melbourne building, are shifting.

The JLL’s Jacob Swan, Nick Willis and Sam Hatcher sold the Darwin centre after being called in by receivers Deloitte. They declined to comment on the buyer or terms of the deal but confirmed that contracts had unconditionally exchanged.

“Following a formal EOI campaign that generated significant inquiry from around the country, 13 formal offers were received – a very strong level of interest for a regionally located, subregional shopping centre,” Mr Swan said.

“Groups were attracted to the strong performance of the major tenants – Coles and Kmart – and the opportunity to add further value by leasing and asset management strategies.”

The agents pointed to the strength of the NT economy.

“The Northern Territory investment case also resonated positively, with all groups attracted to the strong local economic conditions, employment growth and outlook for major investment in the resource, government and defence sectors in the NT,” Mr Hatcher said.

Coolalinga Central’s sale is the third major subregional transaction negotiated by JLL in the past fortnight, following the successful sale of Marketown in Newcastle on behalf of AMP Capital and MarketPlace Raymond Terrace on behalf of the Goodwin & Kenyon group. Those centres were acquired by listed SCA Property Group.

The landmark 77,100sq m island site sits 30km southeast of the Darwin CBD and has exposure to highway traffic.

The enclosed and airconditioned shopping centre with expansive mall areas was constructed in 2017, providing significant depreciation benefits.

The centre was built by Gwelo Investments, which originally put it up for sale in 2019. But the asset came under Wingate’s control this year, partly as the pandemic hit.

Gwelo Investments has a long history in Darwin building hotels, office blocks and major residential developments such as the one at Coolalinga.