This article is from the Australian Property Journal archive
RETAIL Direct Property has finally sold the Centro Seven Hills shopping centre for $82.5 million, after two unsuccessful attempts.
Property fund manager Haben Retail Management bought Centro Seven Hills in Sydney’s west.
The sale is third time lucky for the RDP 4 syndicate, after two previous deals fell over. In July the property was sold for $82.50 million subject to the buyer raising sufficient capital.
Prior to that, in July/August last year the property was put on the market with an asking price of $92 million.
Located on the corner of Prospect Hwy and Federal Rd, Seven Hills was built in 1966 and has a gross lettable area of 19,432 sqm. The single storey centre also has 805 car park spaces. The fully leased annual income is estimated at circa $8,167,000.
Syndicate funds management senior manager Chris Brockett said the price of $82.5 million is in line with the June 2013 book value.
The proceeds were used to retire all syndicate debt, and the remaining proceeds will be distributed to investors in the form of a special distribution equal to $1.55 per unit which will be paid on or around 23 December 2013.
Centro Seven Hills is Haben’s second acquisition in six month, following the purchase of the Woodcroft shopping centre in Sydney’s north-west for $22.6 million in June.
CBRE national director retail investments Steve Lerche negotiated the acquisition.
Lerche said the sale to Haben highlighted the current momentum in the retail market, with a large number of onshore and offshore mandates across all purchaser types presently seeking shopping centre investment opportunities.
“Some 12 months ago retail as an investment class was still not high on the agenda but the table has firmly turned. Investors have once again acknowledged that large neighbourhood and sub regionals centres benefiting from strong performing anchor tenants and non-discretionary, service orientated specialties shops, provide a secure income stream with rental growth,” he added.
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