Sunshine Coast, Sydney shopping centres trade at rapid clip
Neighbourhood shopping centres in Sydney and Queensland’s sought-after Sunshine Coast are trading at a rapid clip with more than $100 million worth of deals completed or under way.
In the latest play, a private investor has paid $48.1m for a new Penrith shopping centre anchored by Woolworths and Aldi.
The pricing on the Cranebrook Village shopping centre in Sydney’s west reflected a tight 5.3% yield.
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The centre has a weighted average lease expiry of more than 14 years, based on several new long-term leases, which drew a wide pool of buyers, including interstate and offshore investors.
The deal was handled by Steven Lerche and Andrew Palmer of Savills and Nick Willis and Justin Dowers of CBRE.
Lerche says the new neighbourhood shopping centre is a rare offering in Sydney and the non-discretionary retail category is still seeing strong sales.
Cranebrook Village derives 70% of its income from Woolworths and Aldi and 84% in total from national retailers.
It also has 13 specialty retailers, including Terry White Chemist, First Care Medical Centre and Australia Post.
In another Sydney play, Centuria Capital has secured a buyer of its Windsor Marketplace neighbourhood shopping centre in Sydney’s northwest that was on the block for about $25 million. The centre is anchored by a Woolworths supermarket. Woolies has a 22-year lease with built-in growth from fixed rental rises.
The centre was fully redeveloped in 2009, and the lease to Woolworths expiring in 2033 has four 10-year options.
Lerche and Andrew Palmer of Savills and Jonathan Fox and Philip Gartland of Stonebridge Property Group are handling the deal, but declined to comment.
Stockland this week offloaded two shopping centres, one in Bathurst in regional NSW and the other in Queensland’s Caloundra, for combined proceeds of $113.1m.
In Queensland, it sold a neighbourhood complex, Stockland South, in Caloundra for more than $22m, reflecting a yield in the mid-5% range. Peter Tyson of Savills brokered the transaction but declined to comment.
This article originally appeared on www.theaustralian.com.au/property.
