This article is from the Australian Property Journal archive
APN Property Group and Newmark Property Group have bought the Lidcombe Power Centre in Sydney's west.
The JV plans to redevelop the asset into a full line sub regional shopping centre, and rebranded as The Marketplace Auburn, with an end value of $120 million.
APN and Newmark have established a new fund, the Newmark APN Auburn Property Fund, to hold the asset.
The Marketplace Auburn will comprise a net lettable area of 33,000 sqm and will be anchored by Woolworths, Aldi, Kmart, Spotlight and Anaconda as well as 50 specialty tenancies and over 100 car park spaces.
The centre is located directly opposite Costco Auburn and diagonally opposite Bunnings with direct access off Parramatta Rd, midway between the Sydney CBD and Parramatta CBD and in immediate proximity to the Homebush precinct.
APN said it has worked successfully with the principals of Newmark Property Group in the past and the two groups have entered into a 50:50 joint venture arrangement.
APN has committed $1.3 million to the new fund and is expected to earn approximately $0.8 million in upfront project initiation fees in FY15. APN’s management fees during the redevelopment phase are effectively on a cost recovery basis. APN is entitled to receive a performance fee equal to 50% of 15% of the project’s gross profit payable on completion of the project which expected to occur in middle of calendar year 2015.
Property Review
