JUNCTION Fair has changed hands for $47 million, its second sale in the past six years adding almost $15 million to the price tag.
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Stirling Property Funds bought the centre near Merewether from Fortius, who acquired the complex in late 2014 for $32.2 million.
A refurbishment to the centre, which at the time had more than half the specialty holdings standing vacant, boosted the holding's value.
Fortius chief executive Sam Sproats said the firm was "very pleased" with the sale.
"Contracts were exchanged pre COVID-19 at $47 million and we worked closely with the team at Stirling to ensure that they had the time to complete their capital raise, which was well underway as the full impact of COVID-19 hit," he said.
Stirling Property Funds chief executive Matthew Hyder said the company's strategy was acquiring quality income-producing assets expected to benefit from infrastructure and changing demographics.
"A couple of elements were very attractive with this acquisition," he said.
"First is the significant yield premium on offer relative to standalone supermarkets and second was the very strong relative value to office assets.
"As we continually assess new opportunities, we remain focused on assets that align with our value focused investment strategy."
The Junction Fair centre is 11,250 square metres and has four street frontages. It boasts more than 7000 square metres of space to let and 231 car spaces.
A joint statement from the buyer and seller said the centre's April sales were 22 per cent higher than the year before, with 91 per cent of its tenants trading through that month despite coronavirus.
Stonebridge Property Group's Philip Gartland and JLL's Nick Willis negotiated the sale.
Mr Gartland said the lockdown had "very much reinforced is the importance of non-discretionary retail and the important role that town centre assets have in serving the community".
"We are anticipating strong demand for this style of asset in the second half of 2020," he said.
Matt Carr
Matt began his Newcastle Herald career as a cadet in 2009. He is a Walkley nominated reporter who has covered councils, police and general news rounds across the Upper Hunter, Port Stephens, Maitland, Lake Macquarie, Cessnock and Newcastle. Now his focus is on digital storytelling and breaking news.
Matt began his Newcastle Herald career as a cadet in 2009. He is a Walkley nominated reporter who has covered councils, police and general news rounds across the Upper Hunter, Port Stephens, Maitland, Lake Macquarie, Cessnock and Newcastle. Now his focus is on digital storytelling and breaking news.
