Project Overview
Client
Australian Superannuation Fund
Property Type
Residential and Mixed‑Use Development Project
Reason for Service
Strategic Development Valuation / Residual Land Value and Feasibility Analysis
Preston Rowe Paterson was instructed by Local Government Superannuation Fund to provide preliminary valuation advice in relation to the temporary compulsory acquisition of part of Bridge Plaza Shopping Centre for use as a construction site associated with the Batemans Bay Bridge replacement project
The advice was prepared to inform legal and compensation strategy, having regard to both temporary and permanent impacts on the retained asset.
The instruction required assessment of the value impact of the acquisition on the retained shopping centre, adopting a before and after valuation approach, having regard to both temporary and permanent impacts arising from the acquisition, including loss of car parking, traffic reconfiguration and consequential effects on rental income, risk profile and market perception.
The advice was provided on a preliminary basis, subject to assumptions and pending further specialist inputs, to inform legal and compensation strategy.
'A before and after valuation framework was critical in isolating the true market impact of acquisition related risk on a neighbourhood retail asset' - Gregory Rowe
Summary of Scope of Services
The instruction required assessment of the value impact of the acquisition on the retained shopping centre, including consideration of:
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Loss of on‑site car parking and changes to traffic and access arrangements
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Disruption arising from construction activity
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Consequential effects on rental income, leasing risk and purchaser perception
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Both temporary and enduring impacts from the completed bridge infrastructure
Asset Overview:
Bridge Plaza Shopping Centre is a single‑level neighbourhood retail centre constructed circa 1984, located in the south coast regional town of Batemans Bay, within the Eurobodalla Local Government Area.
The property comprises a total landholding of approximately 18,152 m² across five irregularly configured lots, with a combined Gross Lettable Retail Area (GLA) of approximately 6,606.5 m², including peripheral properties.
The centre is anchored by a Woolworths Supermarket and supported by a mix of retail and non‑retail tenancies, including:
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One mini‑major tenancy (The Reject Shop)
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Six specialty retail tenancies (with multiple vacancies at the valuation date)
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One office tenancy
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A standalone KFC pad site
Valuation Methodology
A before and after valuation framework was adopted, consistent with compulsory acquisition principles.
The methodology comprised:
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Capitalisation of net income, adopting yields reflective of neighbourhood retail risk, tenancy mix and regional market conditions
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A tenant by tenant discounted cash flow (DCF) analysis over a 10‑year period on a monthly basis
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Explicit risk adjustments reflecting increased leasing risk, income sustainability, parking loss, anchor tenant requirements and access changes
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Cross checks against comparable sales evidence on a rate per square metre of GLA and yield basis
This engagement demonstrates Preston Rowe Paterson’s expertise in:
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Compulsory acquisition valuation, applying rigorous before and after methodologies to quantify value diminution arising from both temporary and permanent acquisition impacts
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Retail asset risk analysis, incorporating income capitalisation and tenant‑by‑tenant discounted cash flow modelling to assess parking loss, access changes, leasing risk and covenant compliance
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Advisory support for legal and compensation strategy, delivering clear, defensible valuation advice suitable for negotiation, expert input and further refinement as project impacts evolve
18,152m²
total land area across five separate lots
6,606m²
gross lettable retail area (GLA)
283
Car parking spaces prior to acquisition
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