The centre, which was developed by Dyldam in 2011, is located in a high profile corner position fronting Victoria Road - and supported by a number of specialty retailers, medical centre and child care provider.
The centre, which also includes 196 car parks, is underpinned by a 20-year lease to Coles and total WALE of 10 years.
Mr Dowers commented on the sale: “The sale of Entrada Shopping Centre further highlights that the market is pricing strata retail investments at a similar level to freehold investments. This is related to the lack of freehold centres offered for sale, but also an increased level of confidence in how these centres perform and the acceptance of this retail platform from the customers.
“Stata retail centres are generally developed in highly built up areas where major supermarkets have found it difficult to get a presence in. The benefit for owners of these assets is that they generally provide consistent rental growth underwritten by population growth, and the competition risks are much less when compared to outer growth areas of major capital cities.”
Mr Willis said the property’s position in Greater Western Sydney’s growth corridor underpinned strong buyer interest in the asset.
“We received a lot of interest from interstate and international investors given their desire to obtain retail holdings in Sydney – and more specifically the western growth corridor, noting the forecasted population growth in this region,” Mr Willis said.
Ben Cook of Cook Property Group, commented on the transaction: "The Entrada Shopping Centre is a good strategic fit for my Sydney portfolio. The anchor tenant, Coles, is enjoying exceptional turnover growth as a result of the centre’s prime location. The barrier to entry for a competing development is significant, Parramatta’s growth story is compelling and the income generated from the asset is mostly non-discretionary. This fits with my investment model of acquiring defensive assets in core Sydney locations, with excellent growth prospects.”
Mr Willis went on to say major growth precincts in Sydney’s west such as Parramatta and Westmead were benefitting from significant investment that was helping underpin demand for retail amenity.
“Investors see this as an opportunity to gain exposure in Australia’s most exciting future cities,” Mr Willis explained
“With over $10 billion worth of development occurring including the Light Rail, Parramatta Stadium, Parramatta Square and the Westmead Hospital, coupled an estimated 30,000 new dwellings in the region, the future income potential of Western Sydney will continue to underpin investor confidence.”
For Australian/international news or global stories, follow us on Twitter: @cbreaustralia
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.