Revelop has purchased its second Sydney retail investment from Mirvac in 12 months.
The Parramatta based investor and developer, led by Anthony and Charlie El-Hazouri, is paying $158 million for Stanhope Village, at Stanhope Gardens, 31 kilometres north west of town.
The $158m price reflects a 5.5 per cent yield, low, given the 5.33 hectare block’s development upside.
The deal comes a year since Revelop picked up the historic Tramsheds complex on 2.3ha at Forest Lodge, in Sydney’s inner south west, from Mirvac for $52m – or 53pc over book value.
Stanhope Village by comparison, is trading for 3pc, or $4m, over the June, 2022, appraisal.
JLL’s Nick Willis and Sam Hatcher brokered both sales.
“Stanhope Village reflects only the sixth freehold metropolitan Sydney subregional [shopping centre] of scale to have sold in the last decade,” Mr Willis said.
“Assets like this continue to attract a strong weight of capital in the current environment given the strong trading performance and investment fundamentals, including long-term mixed use development opportunities,” according to the executive.
Mr Hatcher added “while the market continues to find clarity on the outlook of the economy, investor demand for sub-regional stock remains elevated as evident by total transaction volumes being $2.7 billion for 2022, 74pc over the five year average and just shy of that from 2021’s record breaking transaction volume” (story continues below).
Mirvac opened the first stage of Stanhope Village in November, 2003.
Following a second phase of development four years later and an extension in 2015, it contains 19,454 square metres, with Kmart the biggest occupier, renting 5060 sqm. Coles – with a 3500 sqm tenancy – and Aldi (1329 sqm) are the other anchors, on leases expiring in 2028.
There are 74 specialty stores too – contributing to the asset having a Weighted Average Lease Expiry of 2.8 years.
Mirvac said over a year, the centre accommodates five million visitors with a Moving Annual Turnover of $172.9m.
Stanhope Village also contains 736 car parks.
The sale comes four months since Revelop outlaid $9m for the small Smithfield Square shopping centre, 25km west of the CBD.
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