Billionaire publican drops $450m for Sydney mall
Sam Arnaout has diversified from the hospitality sector with a significant Sydney shopping centre investment.
St Ives Shopping Village covering 2.5 hectares on the Upper North Shore is costing $450 million from the Katz family’s EK Nominees which started buying the amalgamation with the mall 39 years ago.
The result falls c$50m short of expectation when it hit the market in late 2022.
At the time, the annual income was $22m – which would have translated to a low 4.4 per cent yield.
The actual return is speculated to be over five per cent – still low, attributable to the significant development upside.
St Ives Shopping Village
With 17,475 square metres, St Ives Shopping Village is anchored to Coles, Harris Farm Markets and Woolworths.
There are also 105 specialty stores with some businesses occupying over 60 years.
Offered with 12 neighbouring properties added by Katz since 1986, it was promoted as the biggest super neighbourhood shopping centre deal in Australia.
“St Ives Shopping Village has long been identified by Iris Capital as the perfect entry point into the major Australian Retail ownership landscape,” Mr Arnaout, Iris founder, said.
“The centre is highly coveted and has consistently been ranked Number 1 across all of Australia in the Shopping Centre News Mini Guns rankings over the last 20 years due to its’ unique market positioning and outstanding tenant performance,” he added.
“St Ives Shopping Village is well positioned to benefit from significant tailwinds benefitting the retail sector, specifically the undersupply of retail floorspace in the catchment, combined with critically needed future residential supply,” according to the executive.
“We are delighted to purchase St Ives Village…representing the foundation asset for our new retail management platform,” Mr Arnaout said.
The ex-panel beater, 49, is speculated to have a c$2.4 billion net worth.
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