Repositioning potential drives tight result on Western Sydney retail sale

A sharp yield of just 4.6% has been achieved on the sale of a Western Sydney retail centre with significant repositioning potential.

The Henry Lawson Centre changed hands for $24 million, following a highly competitive campaign steered by CBRE’s James Douglas, Alex Mirzaian and Ben Wicks.

The sale was negotiated on behalf of Afford – a provider of disability accommodation and housing, community connection, disability supports and employment services – as part of the group’s ongoing capital recycling strategy.

Mr Douglas, CBRE Senior National Director – Retail Investments, said a broad mix of investors had pursued the Penrith CBD property, which is situated a short distance from Penrith train station.

The existing centre features 12 homewares, office, medical and allied health tenants across 8,841sqm as well as 170 on-grade car parking bays.

“Investors were attracted by the existing centre’s strong investment fundamentals, with the asset providing a secure underlying cashflow at below market rents,” Mr Douglas said.

A Sydney-based private investment group snared the circa 1.6ha Henry Street property, which could be further developed in the longer term for build-to-sell, build-to-rent, student accommodation, co-living, retail, hotel, healthcare and medical or commercial uses subject to the relevant planning approvals.

Mr Douglas said the site was well positioned to benefit from significant growth in the Greater Western Sydney area, of Australia’s most significant emerging economic corridors.

Penrith is strategically positioned at the entrance to the Western Sydney International Airport, which is anticipated to reinforce the suburb’s role as a burgeoning residential and employment hub, further supported by major NSW Government-led developments such as the Outer Sydney Orbital, Nepean Hospital Upgrades and North-South Rail Line.