Why buyer paid record $900m for Western Sydney shop

Westpoint Shopping Centre, Blacktown, has sold for $900m.

The buyer who paid the highest price ever for an Australian shopping centre has revealed why it’s so special.

Local syndicator Haben and US investment manager Hines has just finalised its $900m deal to buy Westpoint Shopping Centre in Blacktown, which eclipses the previous $810m record price for Indooroopilly Centre in November, 2017.

Explaining the reasons for paying the $900m mammoth price, Haben Managing director and co-founder, Ben Finger, said: “Westpoint Shopping Centre is a significant asset offering core retail and mixed-use zoning in one of Sydney’s fastest-growing metro areas.

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The shopping centre is in one of Sydney’s fastest-growing metro areas.

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“This acquisition presents a strategic opportunity to partner with Hines on their first Australian retail acquisition, establishing one of the largest retail partnerships in Australia.”

“Haben are pleased to take over the management and have a strong belief in the resilience and potential of the Australian retail market. We greatly look forward to continuing to grow Westpoint Shopping Centre alongside its expanding demographic.”

The shopping centre has been owned by Queensland Investment Corporation (QIC) for the past 34 years.

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Westpoint shopping centre in Blacktown city centre, pictured in 2021. Picture: Damian Shaw

The corporation’s Town Centre Fund Manager, Michael Fattouh, said it had been “a rewarding journey” transforming Westpoint into the retail and lifestyle heart of Blacktown.

“From introducing an integrated bus station to revitalising the fresh food market and delivering a new dining and entertainment precinct, we are immensely proud of Westpoint’s evolution, and it is only fitting that its sale is the retail deal of the year,” Mr Fattouh said.

“This sale, while still subject to FIRB approval, further showcases QIC’s ability to not only drive performance through active management, but to also deliver successful transactions on behalf of investors when the time is right.”

Part of the attraction is its proximity to major roads, a train station and bus interchange.

Colliers Managing Director, Asia Pacific Retail Capital Markets, Lachlan MacGillivray said:

“The sale of Westpoint Shopping Centre represents the most significant 100 per cent single transaction of an established retail asset in Australian history.

“This is the largest single transaction of an Australian retail centre, eclipsing the sale of Indooroopilly Shopping Centre in 2017.

“The asset possesses all the key attributes investors are seeking: a large Sydney metro landholding, proximity to major roads, and co-location with a train station and bus interchange.

“This transaction marks the first 100 per cent interest in a regional shopping centre to be transacted in Sydney’s metro area since Top Ryde in 2012.”

The sale follows QIC selling its half stake in Perth’s Claremont Quarter for $207m about two months ago.