Fridcorp Offloads Hurstville Retail Centre for $41.5m

Fridcorp has offloaded a retail centre for $41.5 million, part of its $700-million precinct at Hurstville in Sydney’s south.

The Melbourne-based developer sold the 4240sq m under-construction centre to Centuria Capital Group’s subsidiary Primewest on a 4.77 per cent passing yield.

The subsidiary has been active in the retail sector, securing nearly $200 million in assets since September this year, including the 93 Forest Road, Hurstville property.

Other acquisitions included the $71.2-million Northgate Shopping Centre in Geraldton and the $33.8-million Byford Village Shopping Centre in WA, a $14.3-million Potts Point retail precinct and the Chatswood Toyota dealership in NSW for $31.8 million.

Retail asset turnover has sped up drastically in recent months as heavyweight investors and institutional funds go on a record splurge. Topping the list was the $2.6-billion “Pac and Mac” deal by AMP Capital.

The Hurtsville asset is expected to be completed early next year and would be anchored by Woolworths, plus seven specialty outlets and a BWS store, providing a 13.3-year weighted average lease expiry.

Primewest head of retail Bruce McCully said they were strategically targeting investment properties that were underpinned by resilient tenant covenants and a captive audience.

“We will continue to expand our retail platform and believe, as vaccination rates increase across the nation and lockdown restrictions lift, retail spending will be more top of mind with consumers, especially in the lead-up to the festive season,” McCully said.

The centre was part of Fridcorp’s Beyond mixed-use precinct which includes four towers with 563 apartments. Two of the towers topped out in March and achieved 80 per cent pre-sales.

The developer purchased the dormant 13,927sq m site in 2016 with Piety Group and bought out its partner in early 2020.

Fridcorp director Paul Fridman said the suburb was evolving and maturing with demand expected to exceed supply over the next five years.

“Beyond is an important part of the Hurstville Place Strategy, helping the area to achieve its full potential,” Fridman said at the topping out ceremony.

“Along with Westfield Hurstville and the recently completed nearby office tower, the new Beyond retail precinct will help create a future mini-metropolis in Sydney’s south.”

Fridcorp did not initially intend to divest of the asset, but strong market conditions with compressing cap-rates made the decision to sell compelling.

The Hurstville property was acquired through Stonebridge Property Group ’s Philip Gartland, Justin Dowers and Kevin Tong.