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Market Plaza at Chipping Norton Sells For $30m

Market-Plaza-Shopping-Centre_LJ-Hooker-Commercial-Sydney_620x380

The Coles-anchored Market Plaza shopping centre in Sydney’s South-West has been purchased by a private equity trust for close to $30.5 million.

The sale of the fully-tenanted centre at Chipping Norton, in a deal secured by LJ Hooker, represented an approximate passing yield of 5.7% for the purchaser.

Agents James Griffith and Steven Kruyer managed the transaction.

The purchase of the centre, proximate to the State Government’s Western Sydney Priority Growth Area, comes following a period of stagnant retail asset turnover.

The value of retail asset sales dropped 17% across Sydney in 2016 compared to the previous 12 months as stock numbers dried up.

Mr Griffiths said opportunities to purchase neighbourhood shopping centres had been scarce over the past 12 months, which triggered a significant amount of enquiry for the Market Plaza.

“Market Plaza is the most convenient and comprehensive shopping facility between Bankstown and Liverpool,” Mr Griffiths said.

“We worked with the seller to build a strong tenant mix. By securing Coles as the anchor, supported by a 365 sq m ANZ Bank branch and 17 other speciality stores, the centre was a very attractive investment opportunity.

“Coles is on a lease until 2027 which provided added security in the purchase.”

The full-line Coles supermarket is set across 2800 sq m, equating for more than half of the total 4,338 sq m building’s gross lettable area. The shopping centre offers 218 on-site car spaces.

Mr Kruyer said the purchaser was pleased with the overall performance of the centre and that they are going to investigate improving shopper access and mobility around the facility for better connectivity between the businesses and the parking area.

They will also investigate improvements to enlarge the shopping centre so that additional retailers can be accommodated.

"The State Government is encouraging population growth in proximity to Market Plaza so the buyer wants to strengthen its accessibility for these new residents and workers.”

Mr Kruyer said he had developed an extensive database of investors seeking out neighbourhood retail assets throughout the city on circa six per cent yields.

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Article originally posted at: https://theurbandeveloper.com/articles/chipping-norton-shopping-plaza-taken-off-shelves-30-million