Sydney, 12 December 2013 – Property fund manager Haben has acquired the Centro Seven Hills Shopping Centre in Sydney’s west for $82.5 million.
CBRE National Director, Retail Investments, Steve Lerche negotiated the acquisition for Haben, in what is the group’s second major retail purchase this year.
In June, Haben acquired the Woodcroft Shopping Centre in Sydney’s north-west for $22.6 million.
Haben said Centro Seven Hills was a strongly performing, sub-regional centre which complemented the group’s existing portfolio. Seven Hills retail mix is ideal, being predominantly non-discretionary fresh food and services with development upside. All three transport nodes – Rail, Bus and road converge adjacent to the Centre providing the Centre with true convenience.
The property comprises a securely anchored, convenience and fresh food focused centre with a gross lettable area of 19,438sqm. It was originally earmarked for the proposed Pacific Retail REIT but was re-offered for sale by Federation Centres after the float failed to proceed.
Mr Lerche said the sale to Haben highlighted the current momentum in the retail market, with a large number of onshore and offshore mandates across all purchaser types presently seeking shopping centre investment opportunities.
“Some 12 months ago retail as an investment class was still not high on the agenda but the table has firmly turned,” Mr Lerche said.
“Investors have once again acknowledged that large neighbourhood and sub regionals centres benefiting from strong performing anchor tenants and non-discretionary, service orientated specialties shops, provide a secure income stream with rental growth.”
Mr Lerche added; “The weight of money chasing limited stock continues to be the driving force behind a tightening in shopping centre yields.”
Centro Seven Hills is situated on a 45,438sqm site which offers future expansion or redevelopment potential subject to the relevant council planning approvals. This could potentially involve a residential tower and/or additional retail and car parking.
The single level centre has a strong tenancy line up, including three supermarkets - Woolworths, Coles and ALDI – alongside five mini majors and 70 specialty shops. It also benefits from both at-grade and roof top car parking.
Mr Lerche said the centre’s strategic location had been one of the draw cards for Haben, with the property situated within the established suburb of Seven Hills, some 37 kilometres north west of the Sydney CBD at the intersection of Prospect Highway and Federal Road.
The fully leased annual income is estimated at circa $8,167,000.
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