$45m price tag for new Penrith shopping centre

A new Penrith shopping centre anchored by both Woolworths and Aldi supermarkets is up for grabs, with agents expecting it to sell for around $45 million.

Cranebrook Village, which was recently completed at Cranebrook, in Sydney’s west, is tipped to attract offshore interest as the first brand new neighbourhood shopping centre to be offered for sale in Sydney for some time.

Accompanying the supermarket giants are 13 speciality retailers, with a number of new leases pushing the weighted average lease expiry to 14 years.

Commercial Insights: Subscribe to receive the latest news and updates

Savills Australia’s Steven Lerche and Andrew Palmer and CBRE’s Nick Willis and Justin Dowers have been tapped to market the centre, which has tenants including Terry White Chemist, First Care Medical Centre and Australia Post.

Lerche says similar neighbourhood centres have been a rarity on the market in Sydney in recent years.

“We haven’t seen a brand new, high-quality neighbourhood shopping centre formally offered to the market in Sydney for a long time and we can only compare it to the likes of Coburg North Village in Melbourne, which sold for $38 million at a record yield of 4.98%,” he says.

“With an unprecedented WALE, this is a high-performing asset with 70% of the income stream underpinned by Woolworths and Aldi and 84% by national retailers, providing absolute security.”

Lerche says the centre’s location, within Penrith’s newly coined “innovation hub” would underpin its value.

“Located on a prominent corner site, the centre is in the heart of the Cranebrook residential estate, opposite the high school, childcare and community centre, and close to major arterial roads and public transport facilities.”

Cranebrook Village is for sale through expressions of interest, which close on September 26.