Investment Industry News Feature Stories

Parramatta shopping centre changes hands for $41.4m

Entrada Shopping Centre

Amid strong ongoing demand for non-discretionary retail investment opportunities, a private Australian investment trust has acquired Entrada Shopping Centre in Parramatta for $41,435,000, reflecting an initial yield of 5.97%.

CBRE’s James Douglas negotiated the sale of the prominent, fully leased retail complex on behalf of Prime Sydney Retail Holdings Pty Limited following a hotly contested sale campaign.

Situated 1km north of the Parramatta CBD, on the high-profile corner of Victoria Road and Church Street, the centre is anchored by a strong-performing Coles supermarket. It has a gross lettable area of 5,570m2 and features its own 196-space car park.

“Since the onset of the global pandemic, we’ve seen a marked increase in the depth of capital searching for non-discretionary retail, given the highly resilient nature and strong performance of this specific retail sector,” Douglas said.

Entrada Shopping Centre is situated on the high-profile corner of Victoria Road and Church Street in Parramatta CBD

“While total retail transaction volumes have fallen considerably from 2019 levels, neighbourhood centres have taken a significantly increased share of all Australian retail deals – reflecting 62% of all retail transactions in 2020, up from 17% in 2019 – as purchasers seek out assets providing income certainty and security.”

In the case of Entrada Shopping Centre, the asset offers a major tenant WALE of 10.1 years, underpinned by a lease to Coles until 2030 with two, 10-year options.

The supermarket represents over 60% of the GLA and 50% of the gross tenant income and is also the only full-line supermarket in the trade area, driving impressive year-on-year MAT growth of 3.3%.

“The centre is well positioned to benefit from continued growth within Greater Western Sydney, where the population is projected to increase from 2.3 million to over 3.3 million people between 2016 and 2036. This accounts for two-thirds of Sydney’s population growth within the same period, reinforcing Parramatta’s role as a burgeoning residential and employment hub,” Douglas said.

Alongside Coles, Entrada Shopping Centre features a strong line up of national tenants including Liquourland, Subway and an F45 gym, along with medical and childcare centres and a serviced office.

It is located on a 22,486m2 site directly opposite Prince Alfred Square, which will feature as a stop on the light rail network due to open on Church Street in 2023. It is also situated near the new $300 million Bankwest Stadium, $1.2 billion Riverbank Precinct and proposed Parramatta Metro Station.

About the author

Shopping Centre News

Shopping Centre News (SCN) is in the ‘information business’, and is perceived as such by its readers. Daily industry news makes a must-visit as part of the morning routine for those who want to keep right across the latest retail developments and events, while SCN's premium magazine is the leading publication for the shopping centre industry in Australia and New Zealand.

Known as the ‘industry bible’ SCN is printed five times a year with fascinating, in-depth features and important critical analysis written by known industry insiders as well as the popular ‘Guns’ reports, which ranks Australian shopping centre performances. Shopping Centre News is the only publication in the world that features centre statistics on Turnover, Turnover per square metre and Specialty Shop turnover per square metre for every major centre in Australia.

Add Comment

Click here to post a comment