Tweed Mall Hits Market With Major Mixed-Use Development Potential
The triple-supermarket-anchored shopping centre occupies a five-hectare Tweed Heads site with an approved concept plan for 1,371 apartments, hotel accommodation and expanded commercial space.
Tweed Mall has been offered for sale, presenting investors with an established shopping centre and one of the largest redevelopment opportunities in the Tweed Heads commercial centre.
McVay Real Estate and Colliers have been appointed by owner Kyron Capital to manage the expressions of interest campaign for the property at 16-32 Wharf Street.
The sub-regional shopping centre contains 23,420 square metres of retail space across a 50,005-square-metre site.
Woolworths, Coles and Aldi provide an uncommon combination of three supermarket anchors, while Target adds another major national tenant. More than 55 specialty stores and kiosks operate within the centre, supported by 984 car parking spaces.
A recent leasing campaign and capital expenditure program has increased occupancy to 97 per cent.
National retailers occupy 87 per cent of the centre’s gross lettable area. Meanwhile, the weighted average lease expiry stands at 3.5 years by income.
McVay Real Estate director Sam McVay said the property combined income from an established convenience-based shopping centre with extensive development potential.
“Tweed Mall is an exceptional asset that delivers a highly sought-after triple-supermarket, convenience-led sub-regional centre alongside a genuine large-scale redevelopment opportunity,” Mr McVay said.
“This will appeal to retail owners, developers and land bankers.”
Approved Concept Plan Provides Redevelopment Pathway
The property carries E2 Commercial Centre zoning, a floor-space ratio of 4:1 and a maximum building height of 49.5 metres.
An approved concept development plan provides for a staged mixed-use precinct containing 1,371 apartments and 52 hotel rooms.
The concept also includes 13,448 square metres of commercial office space and 38,808 square metres of retail floor space.
Colliers national director James Wilson said the five-hectare holding provided flexibility for a future owner to reposition the existing retail centre or undertake staged redevelopment.
“The approved concept plan provides a stageable pathway for a transformative mixed-use project integrating residential, retail, commercial and accommodation uses,” Mr Wilson said.
Tweed Mall occupies a prominent location less than 350 metres from the Queensland border. It also provides access to the M1 motorway, Gold Coast Airport and the broader South-East Queensland region.
The centre serves a main trade area estimated at 120,670 residents. Selling agents forecast that population will exceed 162,670 by 2046, supported by housing growth, infrastructure investment and tourism.
McVay Real Estate director Dan McVay said the location provided exposure to the continuing growth of South-East Queensland while remaining within NSW.
Lower Specialty Rents Offer Repositioning Potential
Average specialty gross rents are reported at $704 per square metre.
According to the selling agents, that figure sits approximately 45 per cent below the relevant Urbis benchmark, creating potential for future rental growth as leases are renewed or the tenant mix changes.
Colliers managing director Lachlan MacGillivray described the property as a retail turnaround opportunity supported by established major tenants and regional population growth.
“The centre services a rapidly growing demographic region that will see the benefit of continued infrastructure upgrades in the lead-up to the Olympics,” Mr MacGillivray said.
The expressions of interest campaign is being managed by James Wilson and Lachlan MacGillivray of Colliers, together with Sam McVay and Dan McVay of McVay Real Estate.
The campaign announcement does not disclose an asking price or closing date.
