LaSalle snaps up landmark homemaker centre
AsheMorgan is banking a significant capital gain offloading Casula’s Crossroads Centre after three years for $282 million.
LaSalle Asset Management is the buyer, its offer for the 14.35 hectare, 52,138 square metre complex (pictured, top) is speculated to reflect a sub five per cent yield.
The vendor paid the AMP Capital managed Diversified Property Fund $140m.
Completed in 2000, the Crossroads Centre was marketed for its long-term development upside as a logistics hub.
Alternatively, on B5 zoned land, airspace could be replaced with offices, tourist accommodation or certain essential services, like a medical centre or hospital.
Casula is 34 kilometres south west of Sydney.
Landmark centre
Stonebridge’s Philip Gartland, Carl Molony and Jonathan Fox with JLL’s Sam Hatcher and Nick Willis, the agents, said the Crossroads Centre is rare, being one of five Australian large format retail centres measuring over 50,000 sqm owned by one party.
Their deal comes six months since ex-Sydney lord mayor Nelson Meers picked up the neighbouring Crossroads Hotel, on 1.28ha, for nearly $160m – a national record pub price.
Costco also occupies an outlet in the pocket.
For LaSalle, the purchase reweighs its c$2.6 billion local portfolio.
In June, the Chicago-based manager sold Surry Hills’ Reservoir on Crown for $115m – a major premium on the $71m it outlaid in 2017 for a fund.
The month earlier, it paid $170m for the 22 level office component of Billbergia’s (49 storey) 88 Walker St, North Sydney (story continues below).
Last year LaSalle divested a Brisbane CBD office for $214m.
Like Surry Hills, that deal reflected a windfall; it spent $194.4m in two parts between 2017-2018.
Also five years ago, the fund manager sold two Sydney homemaker centres – at Castle Cove and Marsden Park – to Brett Blundy’s Aventus Property Group, for c$440m.
Plenty of options
All but a per cent of Crossroad Centre’s revenue comes from national businesses; amongst the 38 tenants are Bunnings, Fantastic Furniture, Freedom, Nick Scali, Officeworks and Planet Fitness.
The asset also recently underwent a $3m refurbishment, enhancing amenity and adding a food and beverage precinct.
When it was listed in May, the Weighted Average Lease Expiry by income was 5.1 years.
“The rarity of Crossroads’ land holding is further bolstered by its ability to be utilised for an array of industrial uses subject to approvals,” Mr Willis said.
“On record, Crossroads is the largest land parcel in the LFR sub-sector to have traded and the second largest by gross lettable area,” he added.
“Since 2010, only four large format retail centres above $150m have sold,” according to the executive.
One of those deals was sealed in June, when Goodman spent c$200m for a 3.4ha Alexandria bulky goods centre with plans to repurpose it as a last mile logistics hub, likely multi-level.
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