South Coast retail opportunity emerges as demand continues to grow for large-format retail assets

A significant landholding on the NSW South Coast has been released to the market, offering developers and investors the opportunity to capitalise on growing demand for large-format retail and hardware assets in one of Australia's most undersupplied regional trade catchments. 

Located at 74 Millingandi Road, Millingandi, the 45.38 hectare site occupies a prominent position along the Princes Highway approximately 183km southeast of Canberra and 23km from Bega. 

The property is being offered for sale via Expressions of Interest through Jake Smith and Trent Weir of Cushman & Wakefield, alongside Strategic Advisor George Tisseverasinghe of Property-wise. 

The offering comprises two titles totalling 45.382 hectares, including 13.6 hectares of developable land and a progressed concept development application for a hardware and building supplies store. The ultimate scheme contemplates approximately 38,050 sqm of gross floor area and has been supported by extensive planning, engineering and technical due diligence. 

The opportunity comes at a time when investor appetite for large-format retail assets remains strong, particularly in regional markets where population growth, household formation and limited retail supply continue to underpin long-term demand. 

Cushman & Wakefield Manager, Investment Sales NSW, Jake Smith, said the asset was attracting attention from a broad range of investors seeking exposure to a dominant regional retail opportunity.  
"We're seeing strong interest from private investors, developers and retail occupiers looking for opportunities that combine scale, planning progression and clear occupier demand. 

"The Bega Valley trade area remains significantly underserved by large-format retail and hardware operators, creating a compelling investment proposition for buyers seeking exposure to a high-growth regional catchment with limited competition” Mr Smith said.
The property's strategic location is a key differentiator. The site benefits from approximately 1.2 kilometres of frontage to the Princes Highway and sits within a trade area of more than 82,000 residents, supported by approximately 2.42 million annual visitor nights across the Sapphire Coast region. 

Importantly, there is currently no full-line national hardware retailer servicing the immediate catchment, with the nearest major hardware outlet located approximately 170 kilometres away in Batemans Bay. The nearest dedicated large-format retail centre is Canberra Outlet Centre in Fyshwick, around 236 kilometres from the site. 

Cushman & Wakefield National Director, Retail Capital Markets ANZ, Trent Weir, said the market fundamentals underpinning the opportunity reflected broader trends occurring across regional Australia. 
"Large-format retail continues to be one of the most resilient retail asset classes, supported by needs-based spending categories including hardware, homemaker, trade and automotive retailing. 

"Developers are increasingly targeting locations where there is clear evidence of unmet demand, expenditure leakage and limited future competing supply. Regional markets that can support dominant retail destinations are attracting significant attention, particularly where they service broad catchments and benefit from strong spending growth and tourism drivers” Mr Weir said. 
Supporting research indicates the trade area currently generates approximately $293 million in annual large-format retail expenditure and $91 million in annual hardware expenditure, with both categories forecast to grow strongly over the coming decades. Approximately 75 per cent of large-format retail brands are currently not represented within the catchment. 

Property-wise Partner and Strategic Advisor George Tisseverasinghe said the site's combination of scale, accessibility and planning progress was rarely seen in regional markets. 
"Opportunities of this scale and strategic positioning are exceptionally scarce along the South Coast. The site offers a unique combination of highway exposure, extensive frontage, a substantial developable footprint and a well-advanced planning pathway.  

“It provides purchasers with the ability to immediately assess tenant demand and development potential while retaining flexibility for future evolution of the broader landholding" Mr Tisseverasinghe said. 
The concept development application has already advanced key planning fundamentals including access arrangements, servicing, environmental management principles and a new internal road connection between Millingandi Road and the Princes Highway. Extensive supporting reports covering traffic, flooding, bushfire, biodiversity, acoustic and infrastructure matters have also been completed. 

The property is being offered for sale via Expressions of Interest with the agents anticipating interest over $13 million.