IP Generation eyes landmark Sydney mall
IP Generation is eyeing the landmark Top Ryde City shopping centre – with a standalone component extending into the podium levels of five apartment towers – for about $500 million.
The asset manager led by Chris Lock, in the process of being bought by MA Financial, is believed to be establishing a fund to hold the asset, while also carrying out due diligence.
Blackstone listed the complex in April – sprawling over 3.4 hectares, it contains 77,488 square metres, with six anchors, and 2739 car parks.
The US based landlord also invested $125m on upgrades since acquiring the property from receivers McGrath Nicol for $341m in 2012.
It failed to sell as part of a portfolio in 2018 when it was appraised at c$750m.
Ryde is 14kilometres north west of Sydney.
This complex, the agents added, is within an hour drive of 93 per cent of the greater city’s population.
Top Ryde City
The original Top Ryde shopping centre, opened in 1957, was replaced in 2010 with the mixed-use complex.
Acting for a syndicate including ANZ, ING, NAB, the Royal Bank of Scotland and Suncorp, McGrath Nicol seized control the following year from that developer, John Beville.
Also with a childcare centre, gym, medical services and a swim school – it has been kept revamped.
Aldi, Big W, Coles, Event Cinemas, Kmart and Woolworths are the anchors. There are also 23 mini-majors and 152 specialty stores leased to a mix of food, services and entertainment.
The moving annual turnover is $487m – $201m from the supermarkets – marketing agents, Colliers’ Lachlan MacGillivray with JLL’s Nick Willis and Sam Hatcher, added.
Total trade area – 477,000 0 is 45pc more than benchmark, according to the executives.
The mixed-use complex it is part of, contains 653 apartments with over 1500 residents.
The catchment’s average income is also 12.7pc over the metropolitan average.
The deal is the city’s biggest in retail since last June when Westpoint Sydney sold for $900m to Haben and Hines.
IP, Blackstone reweigh
IP Generation is speculated to be buying Top Ryde City on a seven per cent net passing yield.
The deal comes a month since we reported Mr Lock bought Geelong’s ex-Ray’s Outdoors Outlet, since let to second hand goods retailer, Savers.
Also in Geelong, in March, the asset manager is selling the region’s Corio Village to Charter Hall.
It also secured a swag of leases at Nunawading’s Brand Smart complex, which is being revamped.
Amongst them was Tesla which we reported committed last month.
Blackstone meanwhile has also been reweighing its local portfolio with a focus on industrial including in March with a Brisbane property.
In April it shed a stake in Sydney’s landmark Grosvenor Place office for c$1.35 billion.
Last month it offloaded a penthouse atop the One Barangaroo tower – again in the New South Wales capital – for close to $80m.
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