Investment Industry News

Woolworths Schofields sells for $37.5 million setting a benchmark return

The Woolworths Schofield sale recorded the sharpest neighbourhood shopping centre investment yield in 2021, setting a benchmark return of 3.75%

A Woolworths shopping centre located in a rapidly evolving northwest growth corridor of Sydney has sold to a private investor for $37.5 million.

The modern centre, located in Schofields, is anchored by a full line 4,245m2 Woolworths supermarket and is supported by essential service specialties including BWS, Terry White Pharmacy and a café.

The off-market transaction was negotiated by Harry Bui and James Wilson of Colliers on behalf of Firmus Capital, a Singapore-based investment manager who is active in and has a portfolio of commercial office and neighbourhood retail properties in Australia.

“Woolworths Schofields Shopping Centre recorded the sharpest neighbourhood shopping centre investment yield in 2021, setting a benchmark return of 3.75%.” Wilson said.

“A competitive ‘off-market’ negotiation resulted in strong interest from local and offshore investors who were attracted to the convenient centre’s high percentage of income secured by a high performing Woolworths Shopping Centre, combined with its strategic location in the rapidly growing North West Sydney growth corridor,”.

The centre occupies a 1.184-hectare site directly opposite Schofields Railway Station and sold at a GLA rate of $8,378 per sqm.

In 2021, Colliers recorded $2.5 billion in neighbourhood shopping centre transactions, which was an increase of 58% on the previous year. The average cap rate compressed 74 basis points over the same period as an increasing number of private and institutional investor mandates target essential service investments anchored by supermarkets.

“The $37.5 million price point attracted a wide range of both local and overseas investor mandates, especially given the long-term development upside afforded by the Sydney metropolitan site,” Bui said.

“It was the high net-worth investor’s first shopping centre acquisition, highlighting the new wave of private capital from Vietnam and South East Asia countries which Colliers are engaging with to acquire essential service retail investments.”

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 shoppingcentrenews.com.au 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

Advertisement

Advertisement