Primewest snaps up Potts Point retail investment
Primewest has purchased the sixth asset for its Daily Needs Retail fund (DNR) – at Potts Point, in Sydney’s inner east.
The 1285 square metre investment on the lower two levels of the OMNIA apartment complex at 111-113 Darlinghurst Road, at the V-junction with Victoria Street, is costing $14.3 million reflecting a five per cent net yield.
Woolworths occupies three quarters of the space for a Metro store; its 15 year lease started when the building was completed, in 2018.
Interestingly, the supermarket is subject to annual rent reviews.
The asset also contains two specialty tenancies.
Colliers’ Alex James Elliott and James Wilson represented the vendor and developer, Greenland.
Primewest announced it would merge with Centuria in April.
Another asset for DNR
OMNIA, which is diagonally adjacent to Kings Cross’ Coca Cola sign (and a building containing a Coles), replaced the Crest Hotel.
Over 20 storeys it contains 135 dwellings.
In 2019, the complex’s penthouse shell sold for $14.35m (story continues below).
The retail component – with a Weighted Average Lease Expiry of 8.2 years – sits over a three level basement car park.
“Daily needs retail centres, particularly those anchored by leading supermarkets, have been resilient assets throughout COVID impacted trading periods” Primewest head of Retail, Bruce McCully, said.
“This is largely due to non-discretionary retail spend remaining consistent throughout lockdown periods,” he added.
“The OMNIA retail acquisition is a rare opportunity to capitalise on a prime metropolitan location, which benefits from significant footfall, being located within the heart of Potts Point’s thoroughfare, while also servicing a densely populated well-to-do neighbourhood,” according to the executive.
“Its location, directly next to the Kings Cross Railway Station, is also a key benefit of this site”.
Primewest DNR, which was established mid-last year, now owns five Woolworths backed investments – four of which are in Sydney (Spring Farm Centre, Pemulwuy Marketplace and West Ryde Marketplace).
The other, in Melbourne’s Southbank, cost it $70m 10 months ago.
Six weeks ago the manager picked up Byford Village, in Perth, which is anchored by Coles, also the vendor.
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