Charter Hall Group has acquired Campbelltown Mall in western Sydney from Perron Investments for a total purchase price of $197 million, the largest individual subregional shopping centre purchase for 2016.
Campbelltown Mall, located in the core of one of Sydney’s largest south western suburban business districts, is anchored by Coles, Woolworths, Kmart, Target and Aldi together with 10 mini majors and 84 specialty tenancies, with a 98 per cent occupancy and 4.7 year weighted average lease expiry.
“There has been a relative shortage of quality retail investment opportunities of significant scale in 2016, so transactions have remained competitive. Campbelltown Mall is the largest individual sub-regional shopping centre sold this year following divestments by Vicinity Centres, who have been the major sellers and source of sub-regional product in 2016,” said Simon Rooney, JLL’s head of retail investments – Australasia, who exclusively negotiated the sale on behalf of Perron Group in an off market transaction, reflecting a market capitalisation rate of 6.0 per cent.
Rooney said they are continuing to see a depth of institutional investor interest in strong performing sub-regional shopping centres, especially for assets in growth corridors.
The largest sub-regional transactions for 2016 to date, include Vicinity Centres sales of four sub-regional centres to Blackstone and Mirvac ($841.4 million) in June; a 50 per cent interest in Runaway Bay to Perron Group ($160 million) in June; and a 50 per cent interest in Tuggeranong Hyperdome to TTCT Investments ($120 million) in September.
“The sub-regional sector has continued its record level of activity, with $1.7 billion in transactions in 2016 year-to-date, building on the $2.8 billion in 2015 – which was a record high for the Australian market,” Rooney said.
The sub-regional shopping centre has a total gross lettable area of more than 42,200sqm and occupies a prominent 7.2 hectare site, providing very good vehicle accessibility with convenient car parking for 1,788 vehicles.
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