Harrington buys $18m bulky goods centre

HARRINGTON Property Group has purchased the West Gosford Hometown bulky goods centre on the NSW central coast.

HARRINGTON Property Group has purchased the West Gosford Hometown bulky goods centre on the NSW central coast, with the Sydney-based investment group struggling to find value in the office market.

Harrington is believed to have paid more than $18 million for the centre.

The group has acquired more than $50m in retail property in less than six months.

In March, Harrington bought the Fairfield Forum Shopping Centre in Sydney's west for about $32m.

"It's fair to say we're struggling to find any value at the moment in the office sector, so that means our attention has been focused on retail and bulky goods," said Matthew Davison, Harrington Property executive director.

Built in 2003, West Gosford Hometown comprises 17 shops across four buildings with a lettable area of 15,886sq m. The tenants include BCF, Pillow Talk, Petbarn and Supercheap Auto. Mr Davison said the centre met the needs of choosy retailers.

"There are lots of good bulky goods assets, but many will struggle if it's not what the tenants are looking for in terms of block size, the layout and the area's services generally," he said.

CBRE national director of retail investments Stephen Lerche said the deal continued the trend of institutions selling bulky goods centres to the private sector.

"Prior to the GFC, bulky goods centres were being snapped up by REITs (real estate investment trusts) and funds due to the attractive yields they afforded and the lack of shopping centres available to purchase," he said.

But they have become attractive again to the private sector due to the widening yield gap between these properties and traditional shopping centres.