This article is from the Australian Property Journal archive
THE Hurstville Central shopping centre, in a prized position integrated with busy Hurstville train station and two bus interchanges, has hit the market as an underdeveloped opportunity for purchasers.
The shopping centre is anchored by a Coles supermarket and has four mini-majors, 27 specialties, eight kiosks, seven ATMs and 236 car spaces, and is also positioned opposition Westfield Hurstville, owned by Scentre Group and Dexus Wholesale Property Fund.
It is being offered with a WALE of 7.6 years by area and more than 98% occupancy, and potential short to medium-term gains through contracted rent reviews and forecast turnover rents, while it is considered underdeveloped according to key planning controls including floor-space ratio, height and car parking.
Phil Gartland and Carl Maloney of Stonebridge and McVay Real Estate’s Sam McVay and Dan McVay are marketing the asset via expressions of interest closing April 12th.
“Sydney’s phenomenal economic and population growth is making retail investments in metropolitan area increasingly sought after, particularly those located on or around key infrastructure within a short radius of the CBD,” Sam McVay said.
“Hurstville Central vastly outperforms category benchmarks due to its unrivalled passenger/foot traffic and captive position at the station entry.”
The agents said Hurstville Central acts as the sole entry point for 12.5 million commuters.
Gartland said some of the world’s largest retailers have their best-performing tenancies in retail oriented concourses, and understand the benefit of placing stores into highly trafficked transit hubs.
“An example of this is Kings Cross & St Pancras Stations in London where premium retailers such as John Lewis and Nike have established smaller ‘click and commute’ stores focused on serving the needs of commuters and offering a seamless connection between online and bricks and mortar, where time poor customers needn’t deviate from their journey between home and work.”
Hurstville Central is one of the first major metropolitan shopping centre assets to hit the market in 2018.
Sydney-based investor Mintus paid $30.45 million for the St Ives neighbourhood shopping centre and adjoining property in East Ipswich last week, while Melbourne-based investor James Zhang acquired the Marketplace Deagon shopping centre in Brisbane’s north for $23.3 million, on a 6.95% yield, in February.
The Strand in Coolangatta on the Gold Coast was put on the market last week, having undergone a $60 million refurbishment in 2015, as was the Sandy Bay Coles supermarket site in inner Hobart’s Sandy Bay.
In Perth, the 17,442 sqm Woolworths-anchored Kelmscott Plaza neighbourhood centre on the Albany Highway is on the market, having last traded for $15 million four years ago, and the IGA-anchored Mosman Heights Shopping Centre in Mosman Park is also up for grabs, for expectations of more than $12 million.
Australian Property Journal
