This article is from the Australian Property Journal archive
AMONGST the country’s most expansive large format retail assets, the 14.3 hectare prime Sydney infill landholding, Crossroads Centre, is up for grabs.
A 100% interest in the asset is be offered for purchase, giving potential investors a chance at the 143,520sqm freehold Sydney site, which spans four separate titles.
Sam Hatcher and Nick Willis from JLL , alongside Phillip Gartland, Carl Molony and Jonathan Fox from Stonebridge have been exclusively appointed to sell the landholding via an international expressions of interest campaign, on behalf of AsheMorgan.
Built in 2000, the centre has recently been redeveloped to include a $3 million food & beverage precinct, adding to the to the already amenity rich offering.
“Crossroads’ prospects as an income-producing landbank are unmatched for flexibility. A hub for retail, logistics, office and accommodation uses surrounds the future of the asset – and presents an opportunity to an incoming purchaser to capitalise on,” said Willis.
Crossroads Centre at Casula sits in Sydney’s south west, around 34km out from the CBD, boating a total GLA of 52,138sqm, on the flexible B5 zoned site.
“The size of the significant land holding drives the investment underwrite, with a scarcity of land across the Sydney metropolitan area being a major contributor to total investment returns. The rarity of Crossroads’ land holding is further bolstered by its ability to be utilised for an array of industrial uses subject to approvals,” added Willis.
This expansive floor area makes the asset one of only five other LFR centres under a single ownership with a GLA exceeding 50,000sqm.
“Crossroads is within the top five large format assets nationally for total GLA and is backed by a heavyweight tenant mix with over 99% of gross income anchored by national and chain retailers,” said Hatcher.
Crossroads boasts a WALE of 5.1-years by income, with the 100% occupied asset’s 38 national and global tenants providing a secure income platform for growth, as well as repositioning.
“Retail and industrial property are becoming increasingly interlinked with demand for high quality, strategically linked land holdings that can accommodate this growing trend continuing to rise,” said Molony.
Top tenants at the centre include Bunnings Warehouse, Freedom, Fantastic Furniture, Planet Fitness, Nick Scali and Officeworks, as well as co-locational tenants Costco Wholesale, Crossroads Hotel, which recently sold for $160 million.
Additionally, the site is home to industrial tenants including Electrolux, Cosentino, WesTrac, Hunter Transportation and Versiclad.
“The scarcity of such an offering coupled with the strength and versatility of the underlying property fundamentals will appeal to a variety of buyer groups which is rarely available in the market,” said Gartland.
The LFR sector had a strong 2020 and 2021, largely able to overcome any major challenges presented by the global pandemic, with yields compressing 105 bps from 4Q19 to 4Q21.
This was thanks to the asset type’s diverse tenant mixes, largely weighted to resilient retail categories such as household goods, which saw a 23% uptick since the onset of COVID-19 in Australia.
“The scale of Crossroads is rarely replicated or traded within Australia. On record, Crossroads is the largest land parcel in the LFR sub-sector to have traded and the second largest by total GLA. Since January 2010, only four LFR Centres above $150 million have sold,” concluded Willis.
