This article is from the Australian Property Journal archive
FORTIUS Funds Management and SC Capital Partners Group have splashed $174.5 million for the final three retail assets within $2 billion Central Park precinct in Sydney’s CBD from joint venture partners Frasers Property Australia and Sekisui House.
The acquisitions were made on behalf of SC Capital Partners’ RECAP V Fund. The Central Park Retail portfolio includes Central Park Mall, DUO Retail and Park Lane Retail – with a total combined GLA of 14,600 sqm.
Central Park Mall, the largest of the three assets, opened in late 2013 and is anchored by Woolworths supermarket and state-of-the-art Palace Central cinema complex along with diverse mix of entertainment, fashion and experiential retailers, complemented by a world-class alfresco dining precinct.
Frasers Property Australia development director Mick Caddey said the sale is a prime example of the joint venture’s strategy to realise core assets developed in the award-winning Central Park community.
“This is a great outcome for Frasers Property, Sekisui House and the Central Park development. Central Park is a true destination for people with a diverse mix of interesting shops, convenience options and experiential retailers, in a comfortable green setting beneath one of the world’s most iconic buildings.
“The strong interest we received throughout the campaign reflects not only the quality of the retail offer, but also the unique role it plays serving one of Sydney’s premier urban communities in a high-profile, well-patronised location,” he added.
The sale of the Central Park Retail assets is the final component of Frasers Property Australia and Sekisui House’s divestment strategy as 12-year development nears completion.
Fortius FM CEO Sam Sproats said the acquisition demonstrates that value enhancement opportunities can be acquired in even the most premium located urban retail assets.
“Central Park Retail is at the centrepiece of one of Sydney’s most iconic mixed-use urban regeneration projects of recent times. Strategically located in a trade area undergoing rapid gentrification and redevelopment, it supports a diverse and growing demographic with retail expenditure projected to increase by 4.2% per annum,” he said.
SC Capital’s chairman and founder Suchad Chiaranussati said the acquisition is consistent with its strategy of acquiring well-located, income-generating assets with long-term enhancement potential through repositioning.
“SC Capital looks forward to partnering again with Fortius and building on the success of the precinct as we reimagine the next phase of Central Park Retail,” Chiaranussati said.
The assets were sold in one line by Colliers’ Lachlan MacGillivray, who said it demonstrates that demand for high quality shopping centres with outstanding characteristics remains exceptionally strong.
“The Central Park Retail campaign drew interest from all over the world, which is reflective of this,” MacGillivray said.
This is the second significant retail transaction in less than a month after Charter Hall Retail REIT acquired two metropolitan Sydney shopping centres for $281 million.
