Fund managers swap Eastgate Bondi Junction
ISPT has sold Sydney’s Eastgate Bondi Junction after 29 years.
The trophy retail investment – with specialty tenants producing an average 76 per cent above industry benchmark in sales, according to the marketing agents – collected $125 million, reflecting a 6.24 per cent market yield, following an expressions of interest campaign closing in November.
Charter Hall will hold a 49 per cent stake.
The balance will be controlled by its Real Estate Partnership No 6 fund – owned 80pc by Mercer with the balance by Charter Hall REIT.
Stonebridge’s Justin Dowers and Carl Molony with JLL’s Nick Willis and Sam Hatcher were the agents.
Eastgate Bondi Junction
Forming the lower levels of a residential based mixed use project, the Bondi Junction asset, 71-85 Spring Street, contains 15,049 square metres.
Anchors Aldi, Coles, Dan Murphy’s and Kmart contribute to over half the gross income.
There are also 887 car parks (story continues below).
The main trade area captures some 424,000 residents.
According to Mr Hatcher, there are three comparable assets in Sydney’s east, one being owned by the Double Bay council.
Eastgate supports strong trading fundamentals, he added, with specialty tenants producing over $14,800/sqm in sales, he added.
This is 76pc over industry benchmark, according to the executive.
ISPT also recently upgraded the complex including with a full façade refurbishment.
“Assets of institutional quality like Eastate are rarely if ever traded,” Mr Willis said.
“The term gets thrown around a lot in our industry, however this is a once-in-a-lifetime opportunity,” he added.
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