Richmond Mall, the first Sydney metropolitan neighbourhood centre offered to the market in 2024, has sold to a private investor for $35 million.
James Wilson and Ben Wilkinson of Colliers and the JLL Retail Investments team of Sam Hatcher, Nick Willis, Sebastian Fahey and David Mahood sold the property at 271 Windsor Street, Richmond on behalf of Fund Manager IP Generation via an Expressions-Of-Interest campaign.
The transaction represents a benchmark fully leased yield of 5.73% and garnered strong international and local interest, with 11 offers received, over 280 enquiries and 56 groups accessing the data room.
“The sale of Richmond Mall is an excellent result for investors in the IPG Essential Retail Trust. IP Generation has added significant value to the asset throughout its period of ownership through both strategic investment and delivering strong leasing outcomes – including extension of the Coles lease,” said Alistair Dalzell, Asset Manager, IP Generation.
“The successful campaign engaged predominantly domestic and offshore private capital, and generated over $300 million in unsatisfied capital, highlighting the depth of market for high quality Sydney metropolitan neighbourhood shopping centres” Wilson said. “This was the first shopping centre acquisition for the Sydney based private investor, which reflects a key campaign theme of over 60% of bids being received for new mandates”
Richmond Mall
IP Generation undertook a refurbishment of Coles Richmond Mall in 2023, and leveraged the updated presentation and strong performance of the Coles supermarket to attract a diverse mix of 11 largely convenience retailers.
“Opportunities to purchase Sydney metropolitan located neighbourhood centres remain extremely limited with only five centres transacting on-market in the last five-years,” Hatcher said.
“The last on-market opportunity to purchase a sub $40 million Sydney metropolitan neighbourhood centre was two-and-a-half years ago, ultimately fuelling investor demand as demonstrated by the sale of Coles Richmond Mall.”
The recently refurbished neighbourhood centre is anchored by a strong performing Coles supermarket, historically paying percentage rent and is supported by a diverse mix of 11 convenience specialty retailers.
The asset is 100% occupied and provides an attractive weighted average lease expiry (WALE) of more than eight years. Major tenant Coles has recently signed a new 10-year lease until 2033 with further two five-year options.
Situated in Sydney’s rapidly growing North West Growth Corridor, the centre is located just 500m from Richmond Train Station and has easy access to both the Parramatta and Sydney CBDs. The catchment is bolstered by its proximity to the RAAF Base, UWS Hawkesbury Campus, and TAFE NSW Richmond.
