A CHINESE investment company seeking to establish a foothold in regional Australia paid close to $30 million for the Woolworths-Dan Murphy’s development on Prince of Wales Park in Tamworth.
Everich International Pty Ltd completed the deal to purchase the freestanding retail development, which will house the largest Woolworths in regional NSW, from the Moree-based developer Theo Tzannes last week.
In June, Tamworth Regional Council received authorisation to action an exclusive $2.5 million option held by Mr Tzannes on the land after the Joint Regional Planning Panel approved the development.
Brisbane-based Ray White real estate agents Andrew Schmidt and Tim Richards – together with legal firm Speirs Ryan – brokered the deal and confirmed Everich paid almost $30 million on a sale yield of 6.9 per cent.
“The sale yield reflects increased confidence in the market, which has been underwritten by a considerable number of major international investment groups being attracted to the relative stability of the Australian real estate market,” Mr Schmidt said.
According to Ray White, Mr Tzannes’s company, Tamworth Property and Development Investments, will continue to develop and manage the project, as well as retain a minor equity stake, while privately owned Australian firm Quasar will build the centre under contract.
At 4800sqm, the new supermarket will be the largest Woolworths in regional NSW. In comparison, the Coles Southgate shopping centre is 4000sqm and Aldi in Centrepoint is 1500sqm.
Construction is set to begin soon on the land located at the intersection of Peel and Murray steets, with a view to the development being completed in mid-August next year.
Everich, one of China’s leading logistics providers and turns over about $4 billion a year, is making a concerted play to expand into Australia and, in particular, regional areas.
It has formed a local investment arm, Everich Greater China Investors (Australia) Alliance, based in Tamworth, with a view to listing on the Australian Stock Exchange.