In the biggest recorded sub-regional shopping centre transaction this year, Campbelltown Mall has been sold on behalf of Perron Group for $197 million in an off market transaction, reflecting a market capitalisation rate of 6.00 per cent.
JLL Head of Retail Investments Simon Rooney said he, in the Australasia region, has continued to see a depth of institutional investor interest in strong performing sub-regional shopping centres.
He said this is particularly prevalent for assets in growth corridors that contain within them opportunities to add additional value at the owners' and investors' discretion.
Campbelltown Mall is located in the core of one of Sydney’s largest south western suburban business districts and comprises an established, strongly performing convenience based shopping centre.
The centre is anchored by Coles, Woolworths, Kmart, Target and Aldi together with 10 mini majors and 84 specialty tenancies, with a 98% occupancy and 4.7 year weighted average lease expiry.
The sub-regional shopping centre has a total gross lettable area of more than 42,200 square metres and occupies a prominent 7.2 hectare site, providing very good vehicle accessibility with convenient car parking for 1,788 vehicles.
“There has been a relative shortage of quality retail investment opportunities of significant scale in 2016, so transactions have remained competitive," Mr Rooney said.
"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.”
The largest sub-regional transactions for 2016 to date, include Vicinity Centres sales of: