A new freestanding Woolworths and Dan Murphy’s located in Tamworth, has been sold to a major Chinese investment company. Everich International Pty Ltd has purchased the centre for close to $30 million on a sale yield of approximately 6.9%.
The centre which is being developed by Zannes Bros of Moree has been sold on a fund-through basis following a sale campaign conducted through Ray White’s Andrew Schmidt and Tim Richards. Everich was established in Shenzhen in 2000, and is a comprehensive trade service logistics provider within China. The company is now one of China’s top 500 foreign trade enterprises with trading volumes amounting to USD$3.8 Billion in 2013.
Zannes Bros have completed a large number of shopping centres throughout regional New South Wales and will develop manage the project, with Quasar to build the centre. The new Woolworths of 4,800 sqm will be the largest Woolworths in regional NSW, and combined with the new Dan Murphy’s liquor outlet, is expected to generate significant turnover. The Centre is being built on the south-eastern edge of the Tamworth CBD on the intersection of Peel Street (main street in Tamworth) and the New England Highway.
Andrew Schmidt said “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.”
Everich has significant plans to further invest in agriculture in the Tamworth region and wider regional Australia, with a view to enhancing bilateral trade in agribusiness between Australia and China. Chairman Eric Li has established Everich Greater China Investors (Australian) Alliance Pty Ltd with a view to exploring this opportunity, with Tamworth being the base, and in keeping with the Australian Government’s desire to play a significant role in being the “food bowl” to Asia. Chairman Eric Li has stated that he has plans to list the company on the ASX later next year to enable broader investor participation in the company’s plans within Australia. Speirs Ryan have acted as solicitors for this matter.
Tamworth is a strong regional City located approximately 420km north of Sydney at the junction of the New England and Oxley Highways. Tamworth has a population of approximately 36,000 and acts as the regional capital for the New England area and a growth rate of approximately 1.0% per annum. The area has a diverse economy with agriculture, livestock, education, transport and aviation being the major industries.