Top Ryde price doubles to $700m in five years
Private equity and property giant Blackstone is poised to double its money on an investment in Sydney’s Top Ryde City Shopping Centre by putting the site on the block for $700 million, just over five years after taking over the asset.
The group took control of the once-troubled centre in late 2012, buying the debt in a $341 million play with receivers McGrathNicol, and then embarked on a dramatic revival project.
Top Ryde has ridden the fortunes of Australian retail property and was valued at more than $840 million ahead of the global financial crisis. The centre fell on hard times and was weighed down by debt as it was developed by former BRW rich-lister John Beville’s private company.
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Just three years after the sale of the debt to Blackstone, the centre was hit by the departure of Myer. However, Blackstone rapidly replaced the store with three top performers — Coles, TKMaxx and a Harris Scarfe department store — which are now turning over more than $60 million, well ahead of the $18 million in sales that Myer was generating.
The revitalised Top Ryde will be chased by top local and international shopping centre players hoping to capitalise on the $90 million Blackstone has poured into its revival.
Heavyweights including Scentre, Vicinity Centres, GPT Group, Lendlease, QIC, ISPT and Mirvac will likely chase the complex, with international players such as Singapore’s GIC, tipped to team up to bid with local funds managers.
Simon Rooney of JLL is handling the sale, but he and the vendor declined to comment.
Buyers will also chase the property due to the rarity of a full interest in a Sydney metropolitan centre to be offered to market. The 76,958sqm asset also dominates the wealthy trade area, which is growing rapidly as apartment building takes off in Sydney’s northern suburbs.
Among Sydney’s newest, the development includes Woolworths Aldi, Kmart, Big W and Event Cinemas.
The centre now has a major tenant-weighted average lease expiry of 12 years and average annual lease indexation of 4-5%. The site also includes a casual dining precinct and 661 apartments above the retail centre. The complex generates about $34.7 million annually.
This article originally appeared on www.theaustralian.com.au/property.
