Industry News

Two major Sydney metropolitan shopping centres sold to Primewest

West Ryde Marketplace

Two key Sydney metropolitan neighbourhood centres Pemulwuy Marketplace and West Ryde Marketplace have sold to Primewest during the midst of COVID-19. In a combined transaction highlighting the demand for retail holdings in key metropolitan locations, Charter Hall Retail Partnership No.1 Trust (RP1) have divested Pemulwuy Marketplace and West Ryde Marketplace in an off-market deal worth $91.5 million – in line with pre-COVID asset valuations.

West Ryde Marketplace and Pemulwuy Marketplace are situated approximately 16km and 30km from the Sydney CBD respectively, with both assets comprising a flexible mixed-use zoning offering potential for long term development.

The centres were transacted by the JLL Retail Investments team, Sam Hatcher and Nick Willis and acquired by Primewest on behalf of a separate mandate.

“Neighbourhood centres have been the most robust performers through this COVID-19 period which has supported investor demand and liquidity in this part of the retail market. Neighbourhood centres have accounted for by far the largest share (40%) of retail activity so far in 2020 to-date”, said Hatcher.

Pemulwuy Marketplace

Pemulwuy Marketplace is a 5,215 m2 convenience based neighbourhood shopping centre anchored by a full line Woolworths Supermarket and supported by 15 specialties and 2 kiosks.

West Ryde Marketplace, also a convenience-based shopping centre, is anchored by a full line Woolworths Supermarket in addition to 22 specialties and 2 kiosks, comprising a total lettable area of 6,398 m2.

“Both centre’s represented an opportunity to acquire key local land holdings within metropolitan Sydney, underpinned by a secure and resilient income stream which performed exceptionally well throughout the recent COVID-19 lockdown period”, said Hatcher.

“Despite the changes and challenges the sector is facing we are continuing to experience a significant weight of capital looking to invest in retail. The majority of this capital is coming from opportunistic and value-add investors who are identifying value in select assets compared to other sectors. In addition, there is a resurgence of passive core investors who are focused on assets which can offer relatively low risk, and grocery-anchored neighbourhood centres have proven their resilience. This is evidenced by supermarkets continued robust performance, with sales up 27% in March and a further 5% in April nationally”, said Willis.

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