Large format retail tempts investors

A range of investors were attracted by the location and large format of a western Sydney retail investment, with the purchaser paying $84 million for the asset.

Greenway Plaza and Supacentre at Wetherill Park is located in the largest industrial estate in the Southern Hemisphere. It was converted into a combined retail and large format retail facility in 2010 and includes 22,355 sqm of large format space alongside the 6617 sqm of convenience retail on a site of 6.385ha.

Altis Property Partners purchased the centre from a syndicate of private investors for $84 million. The deal was struck by Colliers International’s Harry Bui and Lachlan MacGillivray.

According to Bui, the vendors had “invested heavily” in the asset over recent years to secure “a captive and growing audience.”

The centre is anchored by several national retailers including Spotlight, Officeworks, the Good Guys, BCF, Super Cheap Auto, Petbarn and Red Rooster along with other tenants such Westpac. In total there are 28 retail specialty stores, five kiosks and six offices. 

“The location combined with the large format component made this asset highly desirable to investors.”

“The improving retail spending environment is having an ongoing positive effect on retail vacancy rates, for both traditional retail and large format retail, which in turn is driving investors’ interest in this asset class,” MacGillivray says.

According to Colliers International’s Size does matter research and forecast report for the first half of 2015, large format retail continues to deliver strong growth, with returns of 4.2 per cent in 2014.

“Investors continue to have a strong appetite for well-located retail assets,” MacGillivray explains.

“We have experienced unprecedented demand for the retail assets we have sold, both on and off market, and given the current economic environment we expect this demand will continue to grow.”

http://www.colliers.com.au/find%20research/retail/research%20-%20first%20half%202015/