Stonebridge Property Group have been appointed to sell a strong performing Woolworths and 7-Eleven anchored convenience investment known as Prospect Central, a strategic land rich opportunity in an established high-density market.
Prospect Central is the ultimate “Daily Needs” retail asset, comprising a freestanding Woolworths (including Caltex), BWS, 7-Eleven and four medical/food tenancies plus an expansive at-grade car park plus a provision of basement parking. The asset spans 1.5 hectares across three titles, providing maximum flexibility and exit strategies to an incoming purchaser.
Secured by brand-new 10-year leases to blue chip retailer, Woolworths Group Limited (including a supermarket, petrol, and liquor premises) together with 7-Eleven, the centre has a very strong WALE by income of 8.5 years. Woolworths is dominant within the catchment, trading above turnover rent threshold with high barriers to entry.
Prospect Central also has outstanding landbank fundamentals, benefiting from a B1 zoning and adjoining high density residential, and being in very close proximity to key employment zones in this Western Sydney growth location. The asset is located 34 kilometres west of Sydney’s CBD in the city of Blacktown, one of Australia’s fastest growing cities and a focal point for infrastructure investment and economic growth. Location IQ estimate over 15,290 people are employed in the surrounding precincts, injecting an estimated $35 million to $47 million of retail expenditure into the area.
Philip Gartland said, “We have seen through this pandemic that assets leased to strong “Daily Needs” covenants are at the top of a number of investors requirements. A combination of grocery retail, fuel, liquor, medical and pharmacy is a very compelling mix, particularly with 86% of gross income secured to Woolworths, BWS and 7-Eleven on long net leases”.
Justin Dowers said “Rarely do optimally located Sydney landbank opportunities arise adjoining existing high-density residential and benefiting from a highly secure income stream. The sale will fuel investor and landbank demand and generate strong interest from a range of purchasers including private investors, daily needs/convenience investors and landbank buyers”.
Stonebridge’s appointment follows momentum from the agency’s recent sale of Cherrybrook Village on behalf of Mirvac. Cherrybrook Village is the latest recorded Woolworths Sydney metro neighbourhood shopping centre sale, which sold via a public expressions of interest campaign for $132.8 million on a 5.01% yield.
Stonebridge has been extremely active in the Sydney metro convenience retail space, also recently negotiating the sale of Greenacre Village, anchored by Coles, for $40.5 million on a 4.19% yield in an off-market transaction. Stonebridge have also recently sold freestanding supermarket investments Woolworths Torquay VIC (3.97%) and Woolworths Greenvale Lakes VIC (3.95%). Other recent relevant sales include a Woolworths anchored centre with 4 specialities at Bulli in NSW for 4.03%,
Prospect Central is for sale by Expressions of Interest closing Wednesday 17th November 2021.
For further details, please contact the exclusive selling agents –
Philip Gartland | +61 403 582 324 | pgartland@stonebridge.com.au
Justin Dowers | +61 438 098 805 | jdowers@stonebridge.com.au
Kevin Tong | +61 422 848 818 | ktong@stonebridge.com.au
