Amidst growing demand for retail property due to improving underlying fundamentals of the asset class, Dee Why Grand is being marketed formally for sale at a time where supply of assets publicly for sale reaches a new low.
JLL’s Nick Willis and Sam Hatcher, alongside Stonebridge’s Carl Molony, Philip Gartland and Justin Dowers have been exclusively appointed for the sale of Dee Why Grand, a rare dual supermarket neighbourhood centre offering within 15km of the Sydney CBD.
Willis commented on the favourable timing of the sale, stating, “Following a strong finish to 2023 where almost 60% of total transactions occurred in the final quarter, 2024 has seen a substantial reduction in formal on-market opportunities for sale.
“Dee Why Grand will mark the first formal Sydney metropolitan institutional grade opportunity to come to market, of which we expect strong local and offshore interest,” said Willis.
Dee Why Grand recently underwent a $3.7 million common mall refurbishment
Dee Why Grand is anchored by supermarket heavyweights Coles and ALDI, while also being supported by two mini-majors and 29 specialties and kiosks across 9,976m2 of lettable area. The property’s parent land holding of approximately 3.5 ha in this tightly held catchment on the northern beaches makes it difficult to replicate the scale of the shopping centre and protects the property from new competitive threats.
“Investment market institutional and private capital remains very focused on non-discretionary tenancy mix and the strength of anchor tenant covenants. Dee Why Grand is perfectly positioned to meet these requirements. The location within Sydney and position within increasing density will ensure strong interest from the market,” said Molony.
Dee Why Grand is anchored by Coles and ALDI
The opportunity to acquire neighbourhood shopping centres within close proximity to Sydney CBD are exceptionally rare, with only four comparable dual-supermarket neighbourhood centres trading hands since 2010.
The Dee Why Grand Shopping Centre presents to an exceptional standard throughout having benefitted from ISPT’s management for nearly ten years.
“Sydney continues to be tightly held for core non-discretionary based offerings. The recent sales of Stockland Balgowlah and Eastgate Bondi Junction for a combined $282 million demonstrates capital demand for these core assets that are irreplaceable and have proven historically very difficult to acquire,” said Hatcher.
Dee Why Grand – a rare dual supermarket neighbourhood centre offering within 15km of the Sydney CBD
Dee Why Grand has continued to evolve with the introduction of ALDI in 2020, and The Reject Shop in 2022. Following a recent $3.7 million common mall refurbishment, the centre’s tenant profile has increasingly been weighted toward non-discretionary uses, with some 94% of the income underpinned by grocery, food, health and services.
Dee Why Grand is available for sale through an expressions of interest campaign closing 3rd May 2024.
