Fortius has acquired the freehold interest in Stockland’s Cammeray Square in Sydney, for $39.05 million reflecting a yield of 7.0%. Neighbourhood centres were the most traded of all retail assets during Q3 2019, with 14 deals equating to $565 million. Earlier this year, Stockland released its FY19 results, highlighting the group had achieved $505 million of retail town centre divestments (Bathurst, Cleveland, Caloundra South, Kensington, Toowong, Tooronga, Cammeray and Jesmond). Stockland Jesmond in Newcastle was purchased by Haben Property Group for $118 million.
Sam Sproats, Chief Executive Officer & Executive Director, Fortius Funds Management Pty Ltd said: “The acquisition of Cammeray Square is consistent with the firm’s investment strategy of acquiring well-located inner-urban retail and mixed-use assets underpinned by diverse income streams that are supported by strong and growing catchments.
“In an evolving retail landscape, retail requires continued reinvention to appeal to and maintain customer interest and loyalty. At Cammeray Square, we see key opportunities to improve the customer experience through ambience, repositioning and accessibility initiatives that strengthens the tenancy mix and enhances the offering to the local community and broader retail market.”
Cammeray Square forms part of a mixed-use development comprising four buildings surrounding a central plaza
The Cammeray Square lifestyle and convenience centre services one million customers annually on Sydney’s Lower North Shore and is set over a 6,815m2 corner site fronting Miller Street and Amherst Street. The centre forms part of a mixed-use development comprising four buildings surrounding a central plaza, with retail tenancies situated on the ground floor, anchored by Harris Farm Markets and comprising 15 specialty shops and restaurants.
The upper levels are occupied by five commercial tenancies, including childcare operator, Only About Children, and a strong medical offering. The fully leased site has a Weighted Average Lease Expiry (WALE) of 5.8 years by area. Cushman & Wakefield’s National Head of Retail Investments, Nick Potter, and Senior Executive, Billy Dent, managed the expressions of interest sale on behalf of Stockland.
According to Cushman & Wakefield’s Retail Investments report, neighbourhood centres were the most traded of all retail assets during Q3 2019, with 14 deals equating to $565 million in assets being sold during the quarter with an average initial yield of 6.58%.
Liverpool Plaza sold to a private developer for $46 million
The sale of Cammeray Square follows a number of other neighbourhood centre sales in New South Wales within mixed-use or potential mixed use sites brokered by Cushman & Wakefield, including the sale of Abacus Property Group’s Liverpool Plaza shopping centre to a private development group for $46 million and, before that, the off-the-plan purchase of the Coles Crows Nest stratum in for $43 million.
Cushman & Wakefield’s Head of Retail Investments, Nick Potter, said: “Neighbourhood shopping centres like Cammeray Square with a populous inner-city location, and a strong weighting towards defensive, convenience and serviced based occupiers, are still experiencing strong demand despite a softer retail environment.
“We continue to see the trend towards neighbourhood centres integrating with strata mixed-use developments. This has helped underpin strong investor interest in these centres in New South Wales and across the east coast, and liquidity is expected to continue.”
Stockland Jesmond was purchased by Haben Property Group for $118 million in a deal brokered by Colliers International and Stonebridge Property Group
Established in 1991, Fortius is a privately owned property funds management company dedicated to property investment and value restoration. Fortius has managed investment funds for more than 28 years and have invested in excess of $4.7 billion in Australian real estate during that time.
