Stonebridge Property Group & McVay Real Estate have announced the sale of Cherrybrook Village on behalf of Mirvac for $132.8 million.
Cherrybrook Village is a dominant and established 9,382m2 neighbourhood shopping centre located 30km north west of the Sydney CBD. The convenience focused, single level centre is anchored by a strong performing Woolworths, one mini major and 51 specialty tenants. The property has a substantial site area of 29,540m2 and provides 441 on-site car parks which are accessed via two separate vehicular entry points.
Campbell Hanan, Head of Integrated Investment Portfolio, Mirvac said: “Cherrybrook sold for a 43% premium to book value, demonstrating the strong demand that exists for convenience-based assets at that price point. Funds from the sale will be redeployed into our retail portfolio comprising carefully curated urban centres that benefit from catchments with high population growth and offer future development potential.”
The asset was sold following a public expressions of interest campaign, with 45 groups entering the data room and multiple parties submitting unconditional sale contracts
Sam McVay of McVay Real Estate said: “The demand for quality convenience assets is at unprecedented levels, with a mix of private, syndicate, institutional and offshore capital all competing for very limited supply, and the weight of capital is driving strong pricing for this asset class.”
The asset was purchased by SLMC Property Australia Pty Ltd (a wholly owned subsidiary of Sim Lian – Metro Capital headquartered in Singapore), adding to their existing retail and commercial portfolio of more than $1 billion across Australia, which included the recent acquisition of the Sydney neighbourhood Ropes Crossing Village in January this year.
Carl Molony of Stonebridge said: “The past 12 months has seen a number of large metropolitan neighbourhood centres transacted above the $100m plus price point. The very competitive bidding process leading to the exchange of contract for Cherrybrook Village is a strong testament to the resilience of the daily needs space especially for prime neighbourhoods in metropolitan locations despite the challenging market conditions exacerbated by the COVID-19 pandemic.”.
According to Shopping Centre News Little Guns Report 2020, the centre is ranked 12th nationally performing at $14,699 for MAT/m2, and recording a total MAT of $119.39 million.