Fortius has acquired the freehold interest in Stockland’s lifestyle shopping centre, Cammeray Square, for $39.05 million reflecting a yield of 7.0%.
The Cammeray Square lifestyle and convenience centre services 1 million customers annually on Sydney’s Lower North Shore and is set over a 6,815 sqm corner site fronting Miller Street and Amherst Street. The centre forms part of a mixed-use development comprising four buildings surrounding a central plaza, with retail tenancies situated on the ground floor, anchored by Harris Farm Markets and comprising 15 specialty shops and restaurants.
Cammeray Square, image by Mark Merton Photography
The upper levels are occupied by 5 commercial tenancies, including childcare operator, Only About Children, and a strong medical offering. The fully leased site has a Weighted Average Lease Expiry (WALE) of 5.8 years by area. Cushman & Wakefield’s National Head of Retail Investments, Nick Potter, and Senior Executive, Billy Dent, managed the expressions of interest sale on behalf of Stockland.
According to Cushman & Wakefield’s Retail Investments report, neighbourhood centres were the most traded of all retail assets during Q3 2019, with 14 deals equating to $565 million in assets being sold during the quarter with an average initial yield of 6.58%.
The sale of Cammeray Square follows a number of other neighbourhood centre sales in New South Wales within mixed-use or potential mixed use sites brokered by Cushman & Wakefield, including the sale of Abacus Property Group’s Liverpool Plaza shopping centre to a private development group for $46 million and, before that, the off-theplan purchase of the Coles Crows Nest stratum in for $43 million.
Sam Sproats, Chief Executive Officer & Executive Director, Fortius Funds Management Pty Ltd said:
“The acquisition of Cammeray Square is consistent with the firm’s investment strategy of acquiring well-located inner urban retail and mixed-use assets underpinned by diverse income streams that are supported by strong and growing catchments.
“In an evolving retail landscape, retail requires continued reinvention to appeal to and maintain customer interest and loyalty. At Cammeray Square, we see key opportunities to improve the customer experience through ambience, repositioning and accessibility initiatives that strengthens the tenancy mix and enhances the offering to the local community and broader retail market.”
Cushman & Wakefield’s Head of Retail Investments, Nick Potter, said:
“Neighbourhood shopping centres like Cammeray Square with a populous inner-city location, and a strong weighting towards defensive, convenience and serviced based occupiers, are still experiencing strong demand despite a softer retail environment.
“We continue to see the trend towards neighbourhood centres integrating with strata mixed-use developments. This has helped underpin strong investor interest in these centres in New South Wales and across the east coast, and liquidity is expected to continue.”
Overall, retail investment during Q3 totaled $1.6 billion - up nearly 50% compared to Q2 - with Victoria accounting for 35% of the national quarterly transaction volume. While national retail transaction volumes rebounded quarter-onquarter, this represented a 21% decline when compared to the $2.1 billion recorded in Q3 2018.
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