This article is from the Australian Property Journal archive
MIRVAC has offloaded Cherrybrook Village for $133 million, at a 43% premium to the neighbourhood shopping centre’s book value as retail property investors gravitate towards convenience assets.
On the buy side is SLMC Property Australia Pty Ltd, a subsidiary of Singapore-based Sim Lian – Metro Capital, which adds to their existing $1 billion-plus retail and commercial portfolio that includes Sydney neighbourhood centre Ropes Crossing Village that was acquired early this year.
Located 30 kilometres north west of Sydney’s CBD, Woolworths-anchored Cherrybrook Village has a 9,382 sqm floor area over a single level and includes one mini-major and 51 specialty tenants.
It is perched on a 29,540 sqm site with 441 on-site car parks accessed via two separate entry points.
Stonebridge Property Group and McVay Real Estate managed the sale on behalf of the ASX-listed group, 45 groups entering the data room during the expressions of interest process and multiple parties submitting unconditional sale contracts.
“The demand for quality convenience assets is at unprecedented levels, with a mix of private, syndicate, institutional and offshore capital all competing for very limited supply, and the weight of capital is driving strong pricing for this asset class,” Sam McVay of McVay Real Estate said.
Convenience, neighbourhood and large format centres continue their dominance in the retail sphere, driving rolling quarterly retail transaction volumes to a 230% year-on-year increase, according to The Data App.
Adelaide billionaire Con Makris earlier this month furthered his retail portfolio selldown program with the $71 million divestment of triple supermarket-anchored Hallett Cove Shopping Centre, while IOOF made its first property acquisition in the large format retail sector, paying $68 million for the brand new Great Western Centre in Sydney’s Minchinbury.
Carl Molony of Stonebridge said the past 12 months has seen a number of large metropolitan neighbourhood centres transacted above the $100 million-plus price point.
“The very competitive bidding process leading to the exchange of contract for Cherrybrook Village is a strong testament to the resilience of the daily needs space especially for prime neighbourhoods in metropolitan locations despite the challenging market conditions exacerbated by the COVID-19 pandemic.”
