Sydney malls sold as retail rerating settles sector
The Dee Why Grand shopping centre has sold for about $60m to a Sydney-based buyer.
Three Sydney shopping centres have changed hands for about $130m in total, with a private group picking up a centre in Dee Why and the expanding Revelop adding to its holdings with the purchase of centres in Kirrawee and Hurstville.
In the play in Sydney’s northern suburbs, property funds manager ISPT sold Dee Why Grand to a Sydney-based buyer for about $60m.
Private company, Wingdom, which specialises in retail and commercial assets and had five neighbourhood shopping centres in Sydney’s metro area, has been linked to the purchase, but declined to comment on the sale.
JLL’s Nick Willis and Sam Hatcher and Stonebridge’s Carl Molony, Philip Gartland and Justin Dowers handled the sale of the dual supermarket neighbourhood centre, and said it showed the growing demand for retail property due to improving underlying fundamentals in the asset class.
Dee Why Grand was the first Sydney metropolitan institutional-grade centre to hit the block this year, and it was chased by both local and offshore investors. It is anchored by supermarket heavyweights Coles and ALDI, and supported by two mini-majors and 29 specialties and kiosks across 9976sq m of lettable area.
JLL senior director of retail investments, Mr Willis, noted the keen contest for the core metropolitan Sydney centre.
“The centre attracted strong interest from local and global investors, ultimately being acquired by a private high-net worth investor,” he said.
“On-market shopping centre volumes are down in 2024; however, improving fundamentals are driving renewed investor appetite and increased competition. In our last four campaigns, we’ve seen an average of nearly seven bids per asset, ranging from $60m to over $200m.”
JLL head of retail investments, Mr Hatcher said the core convenience sector was highly attractive to all investors, especially for assets in tightly held Sydney.
“Given the current state of the development and construction industry, developments like Dee Why Grand are irreplaceable, adding pressure to supply and driving an improving retail market as supply and demand dynamics shift,” Mr Hatcher said.
Meanwhile, Revelop unveiled its latest retail acquisitions, including Kirrawee Shopping Centre in the Shire, which was offloaded by supermarket giant Woolworths for $39.75m.
The centre opened in 2021, and is anchored by a full-line modern Woolworths supermarket with direct to boot and pick-up facilities, and it was billed as having a fresh food offering and convenience focus. It has more than 4500sq m of retail space and the site is dual anchored by a newly built Woolworths supermarket and a Dan Murphy’s outlet.
It focuses on essential amenity with a laundromat, cafe, and nail bar.
The centre has more than 200 undercover parking spots and is equipped with electric vehicle charging, plus 60 outside parking spaces.
The centre is next to Kirrawee train station and the Princes Highway and sits at the doorstep of a high-density residential development, also a feature of the group’s other purchase.
Revelop also acquired East Quarter Village in Hurstville in another direct deal worth about $30m. The stratum titled neighbourhood centre is anchored by a full-line Woolworths Supermarkets and BWS.
It was slated to sell to Primewest for $41.5m in a deal with developer Fridcorp in late 2021, on a 4.77 per cent yield. But the latest transaction was above 6 per cent, industry sources said.
The Hurstville centre sits within the $700m residential-led mixed-use development, Beyond Hurstville, which has more than 550 apartments.
Revelop said the purchase added more than 5100sq m of prime convenience-based retail space to its portfolio.
