Region doubles outlay with Sydney mall sale
Region Group has doubled its outlay selling a Woolworths-anchored west Sydney mall after 11 years.
Greystanes Shopping Centre has collected $76 million following an off-market deal.
It paid $38.2m upon the mall being fully refurbished.
Woolworths Limited, through its development arm, Fabcot, was that seller; the property was of multiple tipped into the ASX-listed SCA Group (or Shopping Centres Australia Group), which it established in 2012.
Woolworths paid $25.5m in 2011; it was also the anchor on a lease to expire in 2013 with no renewal options.
SCA changed its name to Region in late 2022.
The incoming Greystanes Shopping Centre owner, Revelop Group, was represented by CBRE’s James Douglas.
The price reflects a five per cent yield and the tightest capitalisation rate for a neighbourhood shopping centre over $50m, according to the agent.
It also prices the lettable area at $12,639 per sqm.
Greystanes is 29 kilometres west of Sydney.
Revelop invests again
Revelop is headquartered at Parramatta, six km closer to the city than Greystanes.
“The acquisition not only strengthens our presence in western Sydney but also creates powerful synergies with our existing centres in surrounding areas including Pemulwuy, Smithfield, Blacktown, and Stanhope,” director, Charbel Hazzouri, said.
“We see strong future potential in this asset and are proud to continue investing in high-quality, community-focused retail centres,” he added.
With 6013 sqm over a level, and 30 specialty tenancies, predominantly food and services businesses, Greystanes Shopping Centre also contains 271 car parks – the bulk in a basement.
On a 1.75 hectare Merrylands Highway block, its catchment is about 92,000.
The average household income is $105,374.
“We are increasingly seeing vendor and purchaser price alignment on transactions,” Mr Douglas said.
“In this instance, the strong pricing and total return outcome for Region Group was matched by Revelop’s desire to acquire an asset in metropolitan Sydney and in an area where they held other retail investments,” according to the executive.
“Through national sale campaigns we are coordinating, we are seeing increased activity and investor engagement in sale processes.
“We expect transaction volumes and pricing to reflect this market shift through the balance of the year”.
Revelop has been a particularly active investor and developer since COVID.
Last month we reported the group secured land once controlled by the Port Kembla Golf Club, and abutting the course, at Primbee, near Wollongong, with plans for a convenience retail based investment.
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