- Off-market, daily needs precinct within new complex; 100% occupancy1, 13.3 year WALE2, 4.77% initial yield
- Part of Fridcorp’s ‘Beyond’ Hurstville development; below four residential towers providing 550+ apartments
- Acquisition is currently under construction; completion due Q1 2022
- $192.5m of retail assets acquired nationwide since September 2021.
Centuria Capital Group subsidiary, Primewest, has secured an off-market, $41.5 million daily needs retail centre at a new, mixed-use complex in Hurstville, Sydney NSW, which adds to the Group’s c.$151 million worth of retail transactions across Australia since early September 2021.
On behalf of a convenience daily needs institutional retail mandate, Primewest secured the asset on a 4.77% passing yield. It is located at 93 Forest Road, Hurstville NSW within the $700 million residential-led mixed-use development, Beyond Hurstville, which will include more than 550 apartments.
The 4,240sqm centre will be fully leased1 on completion, providing a 13.3 year Weighted Average Lease Expiry (WALE)2.
In addition to a full-line Woolworths supermarket, the asset includes seven specialty outlets, including a BWS liquor store.
Bruce McCully, Primewest Head of Retail, said, “We are strategically targeting retail investment properties that are underpinned by resilient tenant covenants. This includes daily needs centres that cater to non-discretional spending, gateway centres with a captive audience, and high performing specialised assets.
“Primewest has recently acquired several high quality retail properties that cater to a broad suite of investors, ranging from institutional investors to retail and wholesale investors. We will continue to expand our retail platform and believe, as vaccination rates increase across the nation and lockdown restrictions lift, retail spending will be more top of mind with consumers, especially in the lead-up to the festive season.”
Recently, Primewest announced the acquisition of the Northgate Shopping Centre, Geraldton WA, for a $71.2 million; the $14.3 million Woolworths-anchored daily needs retail precinct within Potts Point’s OMNIA mixed used development; the Coles-anchored $33.75 million Byford Village Shopping Centre, WA and it has secured a $31.8 million retail Toyota car dealership in Chatswood, NSW.
The Hurstville acquisition adds to Primewest’s existing $313.3 million3 daily needs retail portfolio mandate, which includes the Potts Point Woolworths precinct, Spring Farm Shopping Centre in southwest Sydney; two western Sydney, Woolworths-anchored centres, Pemulwuy Marketplace and West Ryde Marketplace; Melbourne Square Retail Shopping Centre, Southbank, and the Byford Village Shopping Centre, Perth. The seven asset portfolio provides a 10.6 year WALE.
Primewest merged with the ASX-200 listed Centuria Capital Group in mid-2021. The enlarged company manages a $18.1 billion platform of Funds Under Management (FUM) including $11.1 billion of unlisted real estate funds and $6.1 billion of listed real estate funds.
A Fridcorp spokesperson said that the retail centre is crucial to the ground floor activation for the towers’ residents and is in line with the vision to bring together accomplished operators with a diverse offering not seen before in the area. Fridcorp did not initially intend to divest of the asset, but strong market conditions with compressing cap-rates made the decision to sell compelling.
Stonebrige Property Group’s Philip Gartland, Justin Dowers and Kevin Tong exclusively sold the Hurstville property.
1. Occupancy as at as 1 March 2022, which is the asset’s established settlement date
2. WALE by income, as at 1 March 2022, which is the asset’s established settlement date
3. As at as at 29 October 2021 (post settlement of Omnia)